Elements that comprise a business fund
Posted: Sun Jan 12, 2025 3:58 am
If you want to start a business, you will probably have to purchase a business . Taking over this business allows you to guarantee your project by adopting a customer base that can be expanded later. But the purchase is not done just anyhow. Here are the essential steps for this.
A business is a band database commercial unit that includes tangible and intangible elements. The customer will then have the opportunity to acquire these goods or services. There is no formal definition of what constitutes a business in the Commercial Code. However, a business can nevertheless be defined as a place corresponding to tangible and intangible elements.
The tangible elements of a business fund
Tangible assets are considered to be all the real equipment of the business. This may include the equipment and tools essential to operating the business, any vehicles and furniture, fittings and installations. These different elements are used to operate the business . This also concerns goods. These are divided into raw materials and finished products and generally correspond to the stock. This is intended to be sold. It may be vast or, on the contrary, almost non-existent for companies that work from a catalogue, for example.
These tangible elements are part of the business assets . However, they must be the subject of a separate transfer deed and will be sold separately.
Intangible elements
These elements include regular customers and goodwill (occasional consumers), lease rights, trade name and sign, various trademarks, patents, licenses and employment contracts.
These elements are the main elements of a business . They do not have a concrete existence, but they are essential to the economic activity of the place.
The clientele and goodwill (all potential clients of the business) are also important. This is obviously the essential element of the business. The clientele will in fact determine the turnover, but also the profitability and therefore the price of the business . This clientele must also be real, certain and personal. Therefore, it must exist at the present time and be specific to the business.
As for the trade name (or domain name, brand name, etc.), this corresponds to the name under which the trader carries out his activity. This trade name can be transferred with the business assets. It is protected by the unfair competition action. It is a distinctive sign that allows the business to be individualized. If you have an online site, this will then be the domain name. This is the identifier of the corresponding website.
The right to a lease is essential for a business. It designates the right of the trader to occupy the premises in which he carries out his activity. This right to a lease offers several rights to the trader, even if he is only a tenant. He can thus occupy the commercial premises, and has a right to renew the lease. The right to eviction compensation and the right to assign the lease are also part of this right.
This business fund therefore brings together intangible and tangible elements, unlike a commercial fund which only takes into account intangible elements.
A business is a band database commercial unit that includes tangible and intangible elements. The customer will then have the opportunity to acquire these goods or services. There is no formal definition of what constitutes a business in the Commercial Code. However, a business can nevertheless be defined as a place corresponding to tangible and intangible elements.
The tangible elements of a business fund
Tangible assets are considered to be all the real equipment of the business. This may include the equipment and tools essential to operating the business, any vehicles and furniture, fittings and installations. These different elements are used to operate the business . This also concerns goods. These are divided into raw materials and finished products and generally correspond to the stock. This is intended to be sold. It may be vast or, on the contrary, almost non-existent for companies that work from a catalogue, for example.
These tangible elements are part of the business assets . However, they must be the subject of a separate transfer deed and will be sold separately.
Intangible elements
These elements include regular customers and goodwill (occasional consumers), lease rights, trade name and sign, various trademarks, patents, licenses and employment contracts.
These elements are the main elements of a business . They do not have a concrete existence, but they are essential to the economic activity of the place.
The clientele and goodwill (all potential clients of the business) are also important. This is obviously the essential element of the business. The clientele will in fact determine the turnover, but also the profitability and therefore the price of the business . This clientele must also be real, certain and personal. Therefore, it must exist at the present time and be specific to the business.
As for the trade name (or domain name, brand name, etc.), this corresponds to the name under which the trader carries out his activity. This trade name can be transferred with the business assets. It is protected by the unfair competition action. It is a distinctive sign that allows the business to be individualized. If you have an online site, this will then be the domain name. This is the identifier of the corresponding website.
The right to a lease is essential for a business. It designates the right of the trader to occupy the premises in which he carries out his activity. This right to a lease offers several rights to the trader, even if he is only a tenant. He can thus occupy the commercial premises, and has a right to renew the lease. The right to eviction compensation and the right to assign the lease are also part of this right.
This business fund therefore brings together intangible and tangible elements, unlike a commercial fund which only takes into account intangible elements.