This is when the overall amounts of responsibilities are limited to: the percentage of ownership of the different shareholders. As a far as control is concerned, this means that management must carefully monitor who they are hiring to work as the jackhammer operator. The reason why, is because of the possibility of the on the job injuries that are work related. Taxation issues are limited mainly to the percentage of ownership of the various shareholders. As all income from the business will be divided and reported on the individual tax returns of the business owners. The possible liability issues include: workplace injuries, negligence and the loss of income that an employee can claim (in the event they are injured). To protect itself against the different risks, the business needs to have policies in place that will monitor the activities of managers, to ensure that they are following all regulations. This will help to prevent any kind of frivolous lawsuits from being filed against by the company. At the same time, this corporate structure will limit the amounts of protection for the business owners to: their percentage of the company. ("What is a Limited Liability Company," 2011)
Clearly, when you are establishing any kind of business entity there are going to be a number of different risks that will be facing the organization. As a far as the restaurant / bar these include: operational control for shareholders and how income is being reported. This is because the owners are seeking out, someone who can fill the role of financial partner by: providing them with working capital. While the extermination business, wants to limit their...
The construction company is seeking to reduce their exposure to on the job injuries. These different elements are important, because they are showing how all business must be able to limit overall amounts of risks that they are facing.
This will help to improve the ability of these companies to be able to adjust to shifts that are taking place in: the economy and various regulations. Once this occurs, it means that the overall amounts of risks are reduced dramatically. The reason why is because these factors have been taken into account as part of the business strategy. This will improve the ability of an organization to: adjust to the different changes that they are facing. At which point, they can be able to ensure that they are in compliance these different regulations, while making certain that the underlying risks have been reduced as much as possible.
Bibliography
What is a Limited Liability Company. (2011). Wise Geek. Retrieved from: http://www.wisegeek.com/what-is-a-limited-liability-company.htm
Astarita, J. (2009). Introduction to Private Placements. SEC Law. Retrieved from: http://www.seclaw.com/docs/pplace.htm
Eadie, J. (2011). Using Private Placement Strategies. Covenant Info. Retrieved from: http://covenantmfo.com/blog/2011/3/17/using-private-placement-strategies-minimize-tax-headaches
Schied, J. (2009). What Rules do Franchises have to Follow. Bright Hub. Retrieved from: http://www.brighthub.com/office/entrepreneurs/articles/55272.aspx
