Money card wrote:Now Jnk do you own your own business? now let's say Carl Banks president of g3 has a business checking account with a few hundred employees who work for him. employess who travel for him, sales people, are they allowed to sign themselves up for a small business american express or chase Ink credit card? or does it have to be done by Carl, the vice president or treasurer of g3?
Hey Money card!
I sure do own my own business and that is exactly why I have business credit cards. It helps me keep track of business expenses and it allows me to legally separate my personal spending from my business spending. What JNK buys isn't the same as what JNK's business buys and what JNK's personal financial status is isn't necessarily what JNK's business financial status is.
In the case that you described, the employees under G3 company would be eligible for business credit cards provided the company was the one who issued the cards to them. It doesn't have to be the company president, VP, or treasurer necessarily - BUT person who gives the okay and does the issuing must have the legal okay to do such things.
For example, my father used to have an American Express charge card issued to him by the university he taught at. The card was for work-related charges - hotel rooms and dining out when he went to work-sponsored seminars and conventions - and that was it. Misuse of the card for anything other than business - since the university was the one paying the bill - could result in disciplinary action. If you recall some of the more recent corporate scandals that talk about misuse of funds by various higher-ups of the corporation, that includes misuse of business lines of credit and forcing the corporations to foot personal bills.
That said, a business card issued by a business you work for should only be used under the most stringent of conditions. NOTHING that could possibly be interpreted as personal should be charged on such a card because such a card account is usually managed by someone other than you (meaning, payments and such) and getting audited is not fun.