100

Multi-Level Marketing is viewed as unethical for (generally) two reasons: Many MLM's require you to 'buy in' at a certain amount, often paying some of that buy-in to the person who recruited you. For the worst examples, this turns into a pyramid scheme where the main value proposition isn't an underlying product, it is purely an opportunity to scam as many ...


85

Why are there claims that MLMs are unethical? Because they work much like a pyramid scheme. Members don't make money by selling product, but by recruiting others into the scheme who then recruit others who then recruit others etc until, hypothetically, someone is going to sell the product. Hypothetically. Practically, members buy a lot of product up front ...


54

In its basic form, a corporation is a type of 'privileged democracy'. Instead of every citizen having a vote, votes are allocated on the basis of share ownership. In the most basic form, each share you own gives you 1 vote. In most public companies, very few shareholders vote [because their vote is statistically meaningless, and they have no particular ...


44

If your business is operating on an accrual basis, the income would be counted as occurring in 2016. If your business is operating on a cash basis, the income would be counted as occurring in 2017. If you don't know what that means, you are probably using a cash basis for your business, which means income and expenses take place when you actually receive ...


41

You are currently in a phase of your life where you have a couple hundred € per month you can experiment with freely without hurting yourself too much. If you want to invest the money in stocks, you will likely soon realize that you don't actually have a knowledge which is as deep as you think. The stock market is the world's largest gambling den. Lots of ...


34

No. Purchases for your company are intended to be for your company to perform its function: merchandise that the company sells, equipment that the company needs to function... Purchases for companies are taxed considerably lower than purchases for people. Your company purchases will be VAT free (you pay it when buying anything, but you get reimbursed for it ...


32

You won’t have to pay tax on it, but if HMRC asks about it (unlikely but possible) you will have to explain it. But saying “I was repaying myself the money I put in to start the business”, together with the bank statement showing that transaction, should be a sufficient explanation.


25

How do I achieve my savings goals? This question is the essence of personal finance. Whether the goal is to save for a down-payment on a house, retirement, or just an expensive toy (like a sports or luxury car) the first step is to define what you are trying to achieve and work backward from the big goal to see how much you have to set aside periodically to ...


21

This question is impossible to answer without knowing some details that you probably should not share over the internet. As you are discovering credit score is not the only means utilized for credit approval. Since you are looking to establish a clear delineation between your personal life and your business, which is a great idea, you should work with your ...


18

There are a few concepts I think you should be very aware of as you look at what to do with your money. The first is the concept of utility. What is utility? Think of it as a unit of happiness. If I have 1€, that might give me 1 utility. If I'm hungry and I use that 1€ to buy a sandwich so that I can stop being hungry, that might give me 2 utility. It's a ...


16

Bill was the founder of Microsoft, so he did indeed have a large number of shares as the company was growing exponentially. He has previously donated a large share of his fortune to the Bill and Melinda Gates foundation, so his fortune would be even greater were it not for the philanthropy. He is still a large holder of Microsoft stock at about $12B ...


15

You could be hurting yourself by submitting so many credit card applications, which can be a red flag in many systems regardless of your personal credit score. I realize you say that according to Chase your score is over 800, but what does TransUnion or Equifax say your score is? Do you belong to any of the sites that let you track your score for free? It'...


14

This model would work fine under a couple of assumptions: that market interest rates never change, and that the borrower will surely make all the payments as agreed. But neither of those assumptions are realistic. Interest rate risk Suppose Alice loans $1,000,000 to Bob at 4% under the terms you describe. Bob chooses to make interest-only payments of $40,...


13

When the 2016 models come out, the dealership marks down the 2015 model and then it sells pretty fast. The process doesn't take that long in the car market because the 2015 models are just as good as the 2016 so if they are just a little cheaper, they will sell quickly. If you want a 2008 Audi that has never sold, you are going to be looking for a long ...


13

Is an MLM fundamentally unethical? The way to make money in an MLM is to recruit other people to join the organization, who recruit others, etc. You then get a percentage of their sales. People at the bottom level make little or nothing. People at the higher levels are rewarded, not primarily for selling useful products, but for recruiting people. I ...


13

First off you need to consider startups aggressively subsidize their offer early on in order to capture market share. Popular examples of startups valued at billions of $ that were/are in the red include household names like Uber & Spotify that bled money for years on end. Also, take note social media platforms aim for the network effect and its a ...


12

You can apply for a position with any company you like, whether or not you are a shareholder. However, owning shares in a company, even lots of shares in a company, does not entitle you to having them even look at your resume for any job, let alone the CEO position. You generally cannot buy your way into a job. The hiring team, if they are doing their job ...


12

Just use a personal credit card and be done with it. Your idea of compartmentalizing for bookkeeping purposes is correct and essential to protecting the liability shield provided by an LLC. However it does not require the credit card to be in the LLC's name; it only requires scrupulous separation of bank accounts -- that is, this bank account is used ...


11

Everyone has already addressed the problems with MLM, but I thought I would address the edit you just made: I know that the commonly cited downsides to MLM as users have mentioned is concerning the sale of actual products vs bogus products. While I agree with that assessment, I am wondering, how businesses could still adopt the MLM model, yet retain ...


11

In the U.S., it is almost impossible to get a small business loan without a personal guarantee. If you aren't willing to back your own business, why should the bank or government back it? The SBA, for example, usually requires that anyone with a 20% or higher stake in the business sign a guarantee on any loans. After the business has been in business for a ...


11

My apologies if I missed this point in the other answers, but YES, this is an especially great time to invest from one common baseline consideration. Compounding interest is better and better the longer you have. While technically, most of the investments you might consider grow by means other than interest, the principle holds. Money made that is kept or ...


10

Fantastic question to be asking at the age of 22! Saving and Budgeting A very wise man suggested to me the following with regard to your net income save 10% for retirement, which you don't touch until you retire, but read about options you have for investing which I have written earlier save 10% for unplanned expenses (broken car, heath problem) save 10% ...


10

Is it an unattractive offer many buyers would shy away from? Buyer who have specific plan may skip getting into such deals as this would be an hindrance to resell the business. Others who are not sure, may buy it for to make money in future. Does it seem like a justifiably fair way to sell a domain, while keeping a stake in it? This is preview of ...


10

Some benefits of having a business checking account (versus a personal checking account) are: You can deposit checks made out to the business name. This improves perception of your business's validity. You can have multiple signers on checks if you ever want to delegate paying bills to someone else. If you want to accept credit cards directly from a bank, ...


10

I can almost guarantee that it is because you are living abroad. When you apply, the location of your business actually doesn't matter much. They are not really loaning money to the LLC. They are loaning it to YOU, and they want to know where YOU live. So either you are leaving out personal information which is causing them to deny you, or you are including ...


10

Because the owner of the LLC is generally not personally liable for the company's debts (with certain exceptions), so your personal credit history has no bearing on the LLC's credit-worthiness (except under the circumstances outlined in the linked article, such as if you co-sign for your LLC). Put differently, the LLC is borrowing the money and, under most ...


9

To me the ethical concerns of MLM are centered around not accurately describing the business. This may be born out of the perpetrator's limited understanding. The key thing to understand about MLM is that you are building a marketing organization, not selling products. If you just sell the products, then you can be more profitable working for minimum wage....


9

Unless there's something very out of the ordinary about your specific situation, private medical insurance policies in the UK, whether group policies through a company or personal ones, are just that: insurance. You and/or your employer pays for cover, and if you need something that the policy covers, the insurance company pays for it. There's no refund ...


8

If I own shares of a company, am I entitled to apply as position of CEO? Sure, but anybody else can apply too. Who decides? The corporate board of directors, who are nominally chosen by a vote of the stockholders. I say nominally, because in practice they are nominated by the current CEO and it's very rare for stockholders to veto the CEO's choice. ...


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