Records have to be kept to document decisions that are made by the board of directors. In small, closely held corporations operations are more informal, but record-keeping is not eliminated entirely. Officers of a corporation can be liable to stockholders for improper actions. Liability is generally limited to stock ownership, except where fraud is involved (ibid).
The most important attribute of a corporation is that shareholders in the company are not liable for corporate debts. This is the probably the most important attribute of a corporation. In contrast, in a sole proprietorship or a partnership, the owners are personally responsible for all of the business debts. If the assets found in the sole proprietorship or partnership are not adequate to satisfy the debt, creditors can go after each owner's personal assets, such as their bank account, house, or other property to make up the difference of what is owed. In the case of a corporation running out of funds, the owners are usually not liable (ibid).
Incorporating also has many other advantages and disadvantages. Corporations offer self-employment tax savings. For instance, the earnings from a sole proprietorship are subject to self-employment taxes. Currently, these can amount to a combined 13.3% on the first $106,800 of a person's income. In a corporation, only salaries (not profits) are subject to taxes such as this saving the owner thousands of dollars per year. Additionally, corporations have continuous life. Unlike...
Business Strategies Coca Cola Company Case Analysis Strategy Recommendation in Business The Coca Cola Company (Case Analysis) The Coca cola Corporation is among the most successful and well-known company in the globe. Its reputable existence is analyzed with its performance and efficient management. The company has dominated and controlled the beverage industry for many years, and has often proven its abilities in innovation, creativity and consumer satisfaction. The company has also set extremely high
Business Cycle Analysis Overview- From the end of World War II to the early 1970s, China was relatively isolated from the global landscape. It was a part of the Soviet Communist Bloc, but remained inwardly focused on improving its own infrastructure and economy, all the while poised for rapid modernization. Openness towards the West began around 1978 with increased trade, a small amount of additional transparency internally, and at least the
Business of Health Care This study highlights essential facts about health care and health in the local, national, and international health care delivery. Healthcare in the U.S. stands at crossroads between opportunities and challenges. Both the local, national, and international health systems face common problems in the delivery of efficient, high quality and equal health services. All these are concurrently happening in times when the amount of care delivered exceeds the
Researchers have an occasion to further organizational science and to make research practical by producing information that can impact changing organizational forms and circumstances. Pragmatically, academic researchers are not likely to get access to a company that is going through change unless the practitioners believe the research will be helpful (Gibson & Mohrman, 2001). There have been a number of calls to augment the significance and effectiveness of organizational science
Castle Restaurants Business Plan -- Stage III Castle's Family Restaurant Business Plan: Stage III Item Company Review Business Analysis HRIS Type/Comparison HRIS Recommendation Steven Covey has proved to be the catalyst for many a job redesign (Covey, et al., 1994). Covey's emphasis on focusing on important tasks has contributed to the ability of operations managers to critically assess how they spend their time and energy, as well as shedding light on how those supervised by operations managers
It is precisely because the company decentralized its controlling brands into less bulky packages that the CEO could streamline their production process and achieve greater results. However, the Hard Rock Cafe article showed exactly the opposite business strategy. Whereas traditionally all Hard Rock Cafe's and Hotels provided their own entertainment, the new strategy that Hard Rock is attempting to create will link many of these operations together through the
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