They require shared a goal and vision for the entity, and a mutual understanding of each owner's role and the parameters for exerting control. Perpetual lines of communication must be available for all parties in response to changing dynamics and the occurrence of unforeseen events. This is particular relevant in the restaurant industry, where consumers have many choices and often make them based on little substance
. The restaurant industry is fraught with sudden changes, which can require added attention, effort and capital in a short period of time. Therefore, a thorough understanding of the roles of each owner, be they a general or limited partner, is essential to a properly functioning partnership.
Additionally, effective partnerships require regular meetings and reviews of all business operations, and a careful understanding of profits and losses. The profits and rewards of the business have to be clearly defined and real to each member; the losses have to be well-reasoned and explicable
. Both must be allocated fairly in accordance with the business plan established prior to setting up the partnership. In other words, individual partners should not reap artificial rewards or suffer disproportionate losses without the complete understanding of all ownership parties. Finally, there should be concrete and clearly defined period of time for all expectations relating to the realization of profit and the expectations of the partners. Performance and time frame matters should be addressed regularly in meetings and reviews conducted within the framework of the potentially fast-changing business. It is recommended that all of this be written down in advance in the form of an agreement that details every aspect of the business. This agreement should be signed by every party and considered a legally binding document. These steps enhance the likelihood that the partnership will survive the tumultuous climate that prevails in the restaurant industry.
Corporations
The corporation is distinguished by its treatment as a separate entity from stakeholders and owners for tax purposes. The corporation itself pays taxes on profits, as opposed to the individual investors. Essentially, the corporation facilitates the collection of capital from individual owners for the purpose of entering into a business venture. Corporations provide the benefit of easy and open transfer of ownership. Also, the lifespan of a corporation is perpetual, rather than lasting until the death or illness of a sole proprietor or all of the relevant partners. This is because the corporation exists as a solitary, legal and independent enterprise, with the power to carry assets or liabilities on its own
Importantly, corporations offer the advantage of limiting asset liability to the amount of the individual capital investment, as opposed to the full liability in a proprietorship or partnership
. Because this is true, individual minority owners have limited power in controlling the day-to-day business operations. The majority of stakeholders typically determine the course of the business. However, management structure of the enterprise can fundamentally change without altering the structure of the corporation. Also, the credit resources of the owners can be limited due to the limits placed on liability. On the other hand, the larger number of participating owners typical for a corporation can imply easier means for generating capital, when the need for capital arises. One final advantage of incorporation is the fact that corporate tax rates tend to be lower than individual rates.
However, corporations have several disadvantages, including the difficult and time-consuming nature of creating one. This is largely because of the many state and federal requirements that owners must fulfill. Also, state boundaries often prevail, leading to additional requirements for businesses wishing to conduct business operations across state lines. Corporations require that an Articles of Incorporation be documented and registered with state and federal authorities. The Articles must include the rules and bylaws of the corporation, and filing fees must be paid in accordance with registration guidelines. Additionally, stock certificates must often be issued for public corporations, which requires additional bookkeeping and accounting personnel. Finally, typical corporate structures do not provide the benefit of shielding income from taxation at the corporate and personal levels.
However, alternative corporate structures exist that do shield stakeholders from double taxation, including companies preferring to be taxed under Subchapters of the Tax Code (or S Corp). An S Corp offers the advantage of allowing income to be taxed only at the shareholder level, so that corporate revenues are not collectively taxed. S Corps have restrictions relating...
Legal Structure of McDonald's Corporation There are many different categories of business in the world today. McDonald's brand franchisees operate as part of a corporation. The company, comprised in part of restaurants run by independent entrepreneurs, is currently considered one of the worlds most successful and largest franchising companies every created. Seventy percent of McDonald's restaurants are owned and operated by independent owners. This corporate business structure has resulted in substantial opportunities
(Chizek, 2003) The Role legal nurse consultant may provide service in a number of roles, including but not limited to: Consulting expert Testifying expert Facility-based investigator Trainer and in-service presenter Peer reviewer Quality improvement, risk management, claims management Liability insurance marketer and clinical resource" (Chizek, 2003) As standards of care constantly change, medical and nursing staff must keep informed of current standard to develop and/or modify policies and procedures, which must be maintained and secured indefinitely. In the
A person's religion is in almost all employment contexts an entirely private issue and asking a job candidate about her religion suggests that that religious affiliation is one of the criteria on which she is being assessed. Again, even if this is in fact not the case, the manager has opened up the process to the suggestion of religious bias. If, however, the person conducting the interview is the director
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In this sense, White has underlined the fact that "the Social Security Administration remains solvent in large part due to deductions taken from the paychecks of illegal immigrant workers, yet Social Security will never pay benefits to those workers. The workers pay in, but they never receive back" (White, 2010). Therefore it can be said that the illegal immigration has a win-win situation. Overall it can be concluded that the
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