Business people are often misled by their investments in their own companies. How much to invest in the company and how much to pay to themselves? These are constant questions of operating a business.

Business people who borrow money from their companies frequently face an I.R.S. challenge. To win the case they need to have a signed note with a repayment schedule and a stated interest rate. Otherwise, the tax people are likely to view the loan as a dividend, taxable to both the business and the owner. There are more and more cases where the I.R.S. has accused business owners of family-owned S corporations of underpaying themselves.  

So, how much to pay and how much is right? The amount depended on the business and on its industry. One of the creative things business people do to keep themselves from running afoul of the I.R.S. is to keep careful minutes of board meetings and record any bonuses paid, making clear that they are performance related, not paid because the owner wanted a new car or luxurious dwelling.

Another is to insure that compensation is based on service rendered, not on the percentage of stock held. The I.R.S. is likely to view payment for stock holdings as a dividend. The last one can’t be deducted as a business expense, but compensation can be, however. The third one is to convert to an S corporation, the entity which allows earnings flow through to the owners, rather than being retained at the corporate level. This type of corporation is not always preferable, because of the various restrictions on S corporations, where only one class of stock and the corporation is must have 35 or fewer shareholders, all United States residents.

In case you go on a regular C corporation, compensation should always reflect performance, not a current performance, however. Although it’s very easy for business people to identify themselves with the company and to feel the ownership, legally the company is a separate entity, and the legal standard of financial operations including owners’ compensation packages is reasonableness. 

What is the next generation of business people? What is the next generation of their cars? Hydrogen, diesel, E85, or something else? This year’s North American International Auto Show announced an alternative propulsion vehicle for business people. Ranging from bio-fuel to fuel cell, it is clear that hybrids are still the most energy efficient technologies available today.

Many “next generation” gas-electric hybrids were unveiled. While dual-mode hybrids are efficient at stop and go traffic, they don’t quite add as much on the highways. A new concept plug-in hybrid from Saturn can potentially go for 10 miles on pure electric power, before needing to use gas.But whether its battery technology, plugging into the grid, powering vehicles from solar, nuclear, or wind, all renewable fuels come into play. Automakers say that having a diverse set of alternatives is the best way to reduce our dependence on gasoline.

This video of crazy traffic in some Indian town reminds me brownian motion named in honor of the botanist Robert Brown. This is the random movement of particles suspended in a liquid or gas or the mathematical model used to describe such random movements. In this video the random movement of drivers makes me think that the only traffic rules there are as following: 

When you are driving in India never, ever, stop for a pedestrian unless he flings himself under the wheels of your car. The first parking space you see will be the last parking space you see. Grab it.

Learn to swerve abruptly. Indian cities are the home of slalom driving. Never get in the way of a car that needs extensive bodywork. Always look both ways when running a red light.

Honk your horn the instant the light changes. Breakdown lanes are not for breaking down, but for speeding, especially during rush hour. Breakdown lanes may also end without warning causing traffic jams as people merge back in.

Never use directional signals when changing lanes. They only warn other drivers to speed up and not let you in. Making eye contact revokes your right of way.

Never pass on the left when you can pass on the right in India. Whenever possible, stop in the middle of a crosswalk to ensure inconveniencing as many pedestrians as possible. And if a pedestrian ahead of you steps in the road, speed up loudly and chase him back up on the curb. Peds have no rights.

Now seriously, I watched this funny video to see some traffic accident to happen. Nothing!