Furthermore, a corporation is also considered to be a stand-alone entity that has separate tax liabilities; as such, the corporation is responsible for paying corporate taxes on any of the profits the company makes, however, each employee is responsible for paying takes on the money that is paid to them in the form of a salary, commission, or dividend (Lorette, 2012). Limited liability helps protect an individual's personal assets such as their cars, homes, and bank accounts should said corporation be sued by creditors when it cannot pay its debts and the corporation's assets are seized and sold to recoup money (Corporation: Definition, Formation, Maintenance, 2012). However, if it is determined that the personal and business dealings of a corporation are so intertwined that they cannot be easily distinguished from each other, a court may be able to "impose personal liability, or responsibility, on the active shareholders. Personal liability may also be imposed if the corporation does not comply with required legal formalities or fails to keep proper records" (Corporation: Definition, Formation, Maintenance, 2012). Other disadvantages to a corporation include double taxation for C corporations,...
Also, the start up costs of forming a corporation and maintaining said corporation can be costly (Lorette, 2012).
In analyzing a Company, we can also compute its gross profit ratio and return on sales. Gross profit ratio is computed by dividing gross profit with sales and return on sales is computed by dividing net income by sales. Respectively, 2006 and 2005 ratios of ABC Company are as follows: 39% and 38% in gross profit; and 16% and 15% in return on sales. Other quantitative measurement of its liquidity is
Businesses are the cornerstone of a capitalistic society. Businesses often drive economic growth and overall societal prosperity. In many instances, business can enhance the overall quality of life of those living in civilization. Looking back briefly at history, provides a unique perspective of business as it relates to societal development. Currently, looking at a minimum wage individual living in America today, they are able to perform tasks and activities that
Business cluster refers to the geographical concentration of closely related businesses, suppliers, and firms belonging in a given field. The primary objective of forming these clusters is to boost the productivity with which firms compete at both national and international levels. Clusters are also crucial in the strategic management processes. This article discusses the benefits of such clusters, the management at domestic and international scales, and the negative aspects of
Transaction Under Each of the Five Ethical Theories Ethical fundamentalism: Juanita's behavior is clearly in contravention of a normative code of ethics since each of the world's religions proscribe bribery. The Bible, for instance, as does the Koran goes on in depth about the severity of perverting justice and bring officials or any one involved in the jurisprudence sector. Utilitarianism Utilitarianism is somewhat stickier in application. If Juanita's behavior provides the greatest amount
Historically, many companies have been resistant to this commitment due to their focus on the bottom line of the business which has become even more prominent during the current economic downturn. However, several factors have recently companies realize that sustainability is an investment that can generate tangible benefits. Most notably, research is increasingly showing that customers value supporting businesses that are socially responsible (Good business deeds, 2004). There is
Business Ethics Drucker's approach to business ethics revolves around the belief that business people are rational actors who, as agents for the shareholders, will evaluate all decisions on a cost-benefit basis. His view of business builds upon and only somewhat contrasts with that of Milton Friedman, who in 1971 famously espoused that the "social responsibility of business is to increase its profits." This paper will analyze these two views, showing how
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