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Hi All,

In continuation to my earlier blog about company formation in relation to banks today i will write about partnership companies.

Again as the name suggests, partnership means 2 or more people coming together to form a company wherein profits and losses will be shared accordingly. Partners may be individuals, companies, schools etc. Partnership may exists or people may come together to increase their income and would also create a legacy for their future generations. Also when 2 or more people come together they enjoy economies of scale and also can leverage each others time and resources.

In Banking terms, a Bank is only concerned about the agreement wherein the partners mutually agree to the terms as to who will open and operate the company account and also will be able to borrow in the name of the company if required. Generally a partnership agreement is in place when their are more than 2 individuals or entities involved. A partnership agreement is not made when they are only 2 people in the company and they agree to share the profits and losses arising out of the business and trust each other. In such a case, the Bank would request both the partners to sign on the account opening documents and would decide as to who will operate the account and borrow money incase required. In most of the companies wherein partners trust each other, the account will be operated by both individuals singly (with their single signature). But if the trust factor is less between the partners, the signing instructions are placed as jointly wherein any instruction provided to the Bank has to be signed by both the partners.

Their are many advantages for a partnership company as mentioned above but the major disadvantage would be that one partner might not be responsible enough in handling the responsibilities and the other would do everything but the profit would be shared equally. Also when profits of the firm increases, one might become greedy and would want more profit share or would want to take over the company completely.

Lastly, from a Bank's point of view a partnership deed or an agreement is enough to ascertain who would operate the account and in the absence of an agreement all partners would be required to sign the required documents to start the account. This is considered a normal company account by the Bank and all channels through which customer can operate the account are provided.

Partnership Company

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Aetna Inc is one of the very popular American managed health care company which sells consumer directed health care plans insurance  along with the Traditional health care insurance  plans. Aetna is the member of the elite club of fortune 100 companies. Aetna Inc is the descendant of Aetna Fire Insurance company of Connecticut.

Aetna Inc provides  health care, dental, disability and several long term insurance and employee benefits basically through employer paid insurance programs(either partly or fully paid by the employer) and also through medicare.

Aetna Inc has spent over two million dollars in the year 2009 on lobbying. The company spent more than eight hundred thousand dollars between Jan and march 2009 which is around 41 percent of the amount which was spent in the same period in the year 2008. Aetna Became the Senate Finance committee's seventh highest contributor during the year 2005-2009.

Aetna Received two out of four stars, in meeting the National Standard of Care, in California Health Care Quality Report card of 2011 edition. In the 2010 edition of the report card Aetna had  received three out of four stars in the same category.

Aetna is one of the leading insurance provider and in the year 2005 it made a revenue of over a billion dollars. By the year 2007 the revenue of Aetna Inc increased by more 25 billion dollars. By the year 2012 Aetna Inc's revenue had increased to over 35 billion USD. 

Aetna Inc

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Acuity Insurance company is a very popular American Insurance company with its head quarters in Sheboygan, Wisconsin. This company was formed in the year 1925.  Its claimed by the companies website that Acuity Insurance company is world's 80th largest Insurance company in the United States of America. The Acuity Insurance company operates in over 22 states of the United States Of America with plans for expansion in the near future.

It currently generates over a billion dollars in revenue through over a thousand agencies. Acuity manages around 3 billion dollars in Assets and is currently employing over a thousand employees. The Acuity Insurance company received A+ rating from the S&P.

In the beginning this company was just a Mutual Auto Insurance company Of the Town of Herman The Acuity Insurance is the only company of the United States of America to be named for ten consecutive years in the Geat place to work Institute's top five Mid sized companies. The American Insurance Association has also given Acuity an Award for providing quality service to its policy holders. The National Association of Professional Insurance Agents  awarded Acuity .the National Company Award in the year 2001.

Acuity Insurance company has come a long way since its inception in the year 1925 and is now a leading name in the American Insurance industry. Acuity is now Nationally recognized company which specializes in Casualty and the Property insurance(Both of these have been discussed in the earlier articles). Acuity received great appreciation for its financial Strength, Technology, Work place environment and Community philanthropy.

Its commitment of serving the society as well as its insured is widely acclaimed. Strong Charitable nature is exhibited by the Acuity Insurance through various contributions, Employee volunteer efforts and various other forms of Social Stewardship. Over the last 12 years the company has contributed over 12 million dollars for worthy causes. The Acuity makes contribution towards  many worthy causes some of them are as follows :

• American Cancer Society
• Aurora Health Care Foundations
• Salvation Army
• Wisconsin Eye Public Affairs Network
• Mead Library Foundation

Acuity Insurance Company

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In this article, we will understand a bit about the various types of company accounts or rather differentiation on the way the company is formed.

The first and the foremost way through which a company is formed is a Sole Establishment or in legal terms Sole Proprietorship. This means that the company is owned by a single individual and is the whole and sole owner of the company.

This is the most simplest of companies as no other person is involved in the decision making process and moreover for a Bank account opening process will be really simple. This is because of the fact that the documents of the company are limited to the trade license of the company and a letter issued by the trade license issuing authority confirming the ownership and share holding of the company.

A sole proprietorship is the oldest forms of companies wherein people do not trust on any one else or wants to keep the ownership rights and decision making powers with himself. In such companies their is no difference between the company and the owner in legal terms as the complete profit earned by the company is his and if their is any loss, he may have to use his personal assets as well to make good the loss.

Their are many advantages and disadvantages of opening a sole proprietor company. Advantages being he is responsible for his own decisions and is not answerable to anyone else apart from himself and his family for any profit or loss arising out of that decision. A major disadvantage of such companies is unlimited liability wherein all assets belonging to the company or the individual are attached with the companies liabilities and if due to any unforseen circumstances, the company goes into losses, these will be utilized to make good the losses of his creditors.

Another important advantage of having a sole proprietor company is that the company is not treated as a separate legal entity and hence the owner need not file a separate tax return for the income earned out of his business. His income and the company income is treated as one and the same and hence taxation is levied only on the individual capacity of the owner.

Finally, a sole proprietor does not have the option to leverage on other peoples time and has to invest a lot of time and has to work with complete dedication. He will never have a dedicated work timing as customers may come anytime and he will be obliged to serve them as every business that comes is important to him and his family. 

Types of companies- Sole Proprietor

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Hi folks, you might be thinking that Banks or financial institutions are the service providers who offer credit cards and their is no need to learn about service providers.

In today's article, let me tell you that Banks offer credit and debit cards to customers but the actual service providers that enable these cards to be used worldwide are 3.

1) Visa Incorporation
2) Master Card
3) American Express

You may have seen their logos on all the debit or credit cards that one holds. The logos depict that the card can be used any of the merchant outlet that accepts payments via visa or master card. Both visa and Master Card does not issue cards or provide credit to customers, rather to provide Banks and Financial organisations with a payment gateway that allows their customers to use the cards.

You may have noticed that i have not spoken anything about American Express till now and only discussed about Visa and Master. I did that on purpose as Visa and Master card offers or rather sells their network to various Banks and Financial Institutions but American Express network is the only network that offers their Credit Cards. American Express cards are only accepted at the terminal which has a tieup or relation with American Express. This is done to ensure that the money made out of every transaction are kept by American Express and not shared.

visa and Master share the revenue generated from every transaction with the Bank involved in the credit card. These gateways or the funds transfer facilitated by Visa and Master Card plays a major role in the global financial system as you may see that a Card issued in United States works in India or Japan or anywhere the network is available. The global financial system pertaining to credit and debit cards would not have flourished to the extent it has now if these payment gateways were not available.

Every transaction that happens at any of the Visa or Master terminal, the merchant is charged a percentage of the transaction value and the revenue is then shared between the Bank and the payment gateway provider which may be Visa or Master card.

So next time you use your card to purchase something at a grocery store or visit any ATM outside your county, remember that it is possible only due to these payment gateways

Card Card service providers

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Another type of savings account offered by Banks is a special kind of savings account which provides a much higher interest than savings account but has few clauses attached to it wherein funds are not accessible as easily as they are accessible in a savings account.

The basic idea of such accounts are that they are operated using Internet Banking or Mobile Banking and teller transactions or basic branch transactions are restricted. Another restriction that is levied for such accounts is the number of transactions that a customer can perform on this account in a month to earn the high rate of interest. Once the customer exceeds the number of transactions, interest rate will drastically drop and reaches next to zero wherein customer earn nothing.

A special savings account is provided with a debit card but no cheque book as money can be withdrawn from such accounts using ATM. Again the restriction on debit transactions apply, for eg; if the number of withdrawals allowed by the Bank are 3 and the customer withdraws from the ATM 4 times, the interest rate drops.

Internet Banking services and mobile banking services are offered to such accounts and the customer can perform all the required banking transactions using these services. If a customer wants to withdraw cash from such accounts using teller counters or branches, they can do so at a charge and the Bank may waive such charges if the amount to be withdrawn is higher than the daily withdrawal limit of a Debit card.

Before i proceed further, let me tell you that a debit card or a credit card has a withdrawal limit again to protect the customers interest that incase if the debit card and pin falls in wrong hands, customers loss will be minimized as the person will not be able to withdraw beyond that amount in one day, further they are transaction limits and ATM limits also in place for security purposes.

So, if the amount that the customer wishes to withdraw is more than the amount he/she can withdraw using their Debit Cards, the Bank may waive the applicable charges based on customer profile and the need of the customer.

No charges are levied by the Bank for non maintenance of minimum balance in such accounts as interest is paid on the amount kept in the account by the customer which again has a maximum cap or amount on which interest is paid. If a customer keeps an amount higher than the amount capped by the Bank on which it will pay interest, Bank will not pay any interest on that amount.

Every Bank has such zero balance savings accounts with different names, ask your Banker for such account and enjoy a higher rate of interest on your money with the features of a savings account.

Special Savings account

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Hi folks, today we will learn about the various channels offered by Banks to make sure that customers only visit their branches to deposit or withdraw cash.

One of such facility is Internet Banking wherein Banks offer all kinds of services such as requesting for a reference letter, checking available balance and ledger balance, transferring funds between one account to account between the same Bank and also between other Banks. Remittance can be made across countries as well using Internet Banking and the beneficiary details have to be entered or rather saved once.

Let me explain you the difference between available balance and ledger balance shown on any Internet Banking page. Available balance is generally displayed when the customer clicks to check his account balances overall or rather the first page of Internet Banking and when the customer checks the transactional history for his account, all transactions are displayed wherein any transactions that are not yet posted or cleared are also displayed as balance.

If a customer does not understand the basic difference between available and ledger balance, he might assume the ledger balance as available balance and issue cheques. Their is a possibility that cheques might be returned due to insufficient funds as a hold might exist on the account or other cheques deposited in the account might not be cleared.

To add further to the things that can be done using Internet Banking is requesting cheque book, taking a copy of the account or credit card statements, requesting for various services on the credit card or debit card. Also customers can check their loan outstanding, their credit card outstanding, their investment details, insurance details, paying bills and so on. The list goes on wherein numerous banking transactions can be done using internet banking.

The simplicity with which Internet Banking works has made it prone to fraudsters who try to get the user ID and password of customers and then remit the available funds in customers account to their account. Always remember, a Bank will never ask its customer to click on a link to enter their user ID and password or to share their identity. If you see anything unusual on the Banks website their is a possibility that you are on a different site or a dummy site.

Always be very careful while using Internet Banking, never share your passwords or write it down. Try to keep a password easy for you to remember but difficult for others to guess. Banks invest a lot of money to keep their customers money and their reputation safe but still fraudsters keep trying and jump on the slightest chance available. Finally, never login to your internet banking account from an unknown or non protected PC to protect your own interest as Bank will not indemnify the customer if fraudster is able to get your user ID and password.

Internet Banking

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