Conditions for acquiring the status of a merchant –


Conditions for acquiring the status of a merchant –

Definition of merchant

A merchant is a person who works in the commercial field and uses his activities as a regular craft, and is not associated with a particular sect or body. It is directly related to his work in the field of trade. The professionalism of trade is also essential to gaining character. The merchants are:

  • Persons engaged in business.
  • Business-related companies.

Effects of becoming a merchant

After we got acquainted with the conditions of merchant status, the effects of acquiring merchant status are necessary. These effects are represented by the following obligations:

  • Commercial books: They are one of the most important means of showing the movement of goods, and the various transactions of the merchant in terms of loss and profit. Where it can be reviewed to pay off debts. It is also a good way to show the financial disclosure when the merchant is exposed to death, bankruptcy or crises.
  • Registration of various activities in the commercial register: the commercial register is a body responsible for registering an individual as a merchant. An individual wishing to start a business must register himself in the field in which he will start.
  • Staying away from unfair competition: The merchant must stay away from unfair competition that causes loss, such as monopoly business.

Read also: Dealer market Definition of the concept with examples.

Effects

Frequently asked questions about becoming a merchant

There are many questions about the conditions for acquiring the status of a merchant, including the following:

  • When does an individual lose the status of a merchant?
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The character of the merchant ends when he stops doing business, as he retires from trade permanently, but if he stops for a temporary period of time due to certain circumstances, this does not lose him the status of a merchant.

  • Is the owner of the institution bears the status of a merchant?

If the manager is not a partner in the company, he does not acquire the status of a merchant, because he does not work in his name or for his personal account. Rather, it is for the benefit of the company.

  • Does a partner in a money company acquire the status of a merchant?

Yes, he acquires the status of a merchant, as he is doing business in the name of the company. If the company goes bankrupt, all the partners go bankrupt.

  • Who is not called a dealer?

A person does not acquire the status of a merchant when he carries out commercial business according to its form, such as a person whose work is related to signing a bond or bill of exchange for an order without being linked to a commercial activity.

  • What is the difference between a merchant and a craftsman?

The work of the craftsman requires the availability of certain qualifications, as he has a manual profession based on special abilities and qualifications. While the work of the merchant does not require a qualification, he does not practice a manual profession.

  • What are the disadvantages of a commercial register?

There are many benefits to owning a commercial registry, but there are several negatives, such as deprivation of a government job. Because it is required not to be busy with the government job to obtain the commercial register.

  • What are the characteristics of a successful trader?
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A successful trader has many qualities, including: experience, dealing honestly with customers, exploiting technology and using new ideas, in addition to developing social behavior skills.

Read also: Tips on how to negotiate with merchants.

At the end of our article, we learned about Conditions for acquiring merchant status, And the definition of the merchant, in addition to the effects of acquiring the status of the merchant. We also got answers to some important questions about it. Trade is a business that requires maturity, experience and insight. Eligibility also requires a condition for doing business to earn a livelihood and a means of subsistence. It is one of the most important areas that many people are looking for. Therefore, specific conditions must be met to obtain the status of a merchant.

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