Monday, May 9, 2011

Simple rule of Capitalism

There is a very simple rule in capitalism which allows entreprueners to take big risks.

If your venture is going well, there is no upper limit for the fortune it could bring to you. While if the venture is going bad, you are protected with the limited liability amount of the company!

In bad days you can declare bankruptcy and make yourself clean from the losses. Following this you can again start a new business with a loan from the bank with the same old conditions!

You never go below zero. No one will come to your home to claim the money lost from your venture, but they will only come to the factory or the assets declared under the company.

Good or bad........this is capitalism.

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