Free Essay

Business Organization

In: Business and Management

Submitted By naijaprincess
Words 2351
Pages 10
The twenty-first century is a period of unprecedented change in organizations. The popular Business press constantly documents organizational restructuring, reengineering, downsizing, and other assorted changes. Even during the robust economy of the late 1990s, many large Companies were shedding jobs at an incredible pace. Terms such as downsizing and rightsizing may suggest a one-time fix, but many experts view this as an ongoing process for organizations of the future (Richman, LS, 1993). So what is organizational change? Organizational changes are departures from the status quo for smooth trends (Huber, GP, 1995). It is the process of altering or modifying the current state in terms of behaviors or functions (Harrington, N, 2008). The forces of change are everywhere, they can be found within the organization itself and they can be found in the external environment. The internal environment is affected by the organization’s management policies and styles, system and procedures as well as employee attitudes. The external environment is affected by political, social, technological and economic stimuli outside of the organization that causes changes (Benowitz, EA, 2011). Why do organizations change? Organizations change for many reasons but there are six broad forces that bring about change: workforce changes, such as diversity; technology changes, such as mobile computing; economic changes, such as stock market fluctuations; competitive factors, such as mergers and acquisition, social trends and world political factors, such as china opening up for trade (Robbins, SP, 2005). Here, we are going to focus on world political factors as they are major factors that cause organizational change. All organizations are affected to some degree by political and legal systems in their environments. The political system is an important variable in virtually all aspects of managerial decision making and activity. Like the other factors, the political factor provides both constraints and opportunities to organizations. It is important because it is the source of laws and regulations that govern the operation of business. This factor includes local, regional, national, and international legal and political systems. For example, both Canada and France have content laws for music, movies, print, and broadcast businesses that require companies to ensure sufficient levels of Canadian or French content (Hodge, BJ, 2003). Perhaps the most obvious impact of government is through its powers to tax and regulate. Governments often attempt to spur economic activity through tax cuts or suppress demand through the application of taxes. For example, local governments may offer tax abatements to businesses willing to locate within the government’s jurisdiction. In 1993 several states in the US engaged in heated competition for new Mercedes Benz and BMW manufacturing facilities. The competing states typically offered elaborate plans that involved relief from property taxes for as long as ten years (Taylor A, 1994). In order to understand the political factor and its effect on organizations, we have to discuss the world economy. In modern history, the dominant effective boundaries of the capitalist world-economy have expanded steadily from its own origins in the sixteenth century, such that today it encompasses the earth (Wallerstein, IM, 1976). Today’s organizations face several key challenges. Even rich and powerful companies with long traditions are not immune to obstacles in meeting these challenges. The recent problems faced by such industry giants such as General Motors, Kodak, IBM, Sears, and countless dot-com internet companies (Edin M, 2002). These companies have been facing challenges and one of the reasons is the global challenge, as in managing organizations in a global environment. Virtually all businesses are affected in one way or another by a host of global issues ranging from tariffs, to the relocation of firms offshore, to import/export restrictions. Currently, mere geographical borders are no protection from the effects of actions taken by businesses and governments all around the world. Almost every business is affected in some way by the seemingly constant crises in the Middle East, perhaps the most notable of which surrounds the importation of oil (Scott, RW, 1992). One need only look at news papers or newsmagazine over the past few years to see how dramatically the world political and business landscape has changed. Communism has fallen in most of Eastern Europe. The shift to market economies in these countries presents business with opportunities, but political instability also creates great risk. In Western Europe the formation of a unified economic market has caused great concern for many businesses, particularly firms outside the European community (Williamson, O, 1981). Several events in Asia may have important implications for business organizations. Recent turbulence in Japan’s economy has made the task of balancing trade more difficult. Because of their own recession, the Japanese are spending less on American products. The economic and political situation in china is equally uncertain. As china has become a more open and adopted a more market-based economy, it has become an increasingly important trade partner for western business. Yet, human rights organizations throughout the world have pressured the Chinese to grant greater political freedoms in exchange for favorable trade relations (Mehdi K, 2006). Additionally, in 1997 the former British colony of Hong Kong, a major Asian economic center, reverted to the people’s republic of china. No one knows what long-range impact this change will have on Hong Kong-based businesses. Also, adoption of the north American free trade agreement (NAFTA) and recent revisions in the general agreement on tariffs and trade (GATT) will reduce trade barriers between the united states and its trading partners throughout the world. This, too, will create new opportunities for American businesses, but it is also likely to increase competition. Many businesses may expand the scope of their operations. Some will relocate to take advantage of lower costs of doing business and some will be challenged by new competitors. The point is that no business, big or small, can ignore events throughout the world (Knopf AA, 1987). Government’s impact on business extends beyond domestic businesses. Another area of rapid change in recent years is international trade. The signing of NAFTA has removed or substantially reduced trade barriers among the United States, Canada, and Mexico (Harbrecht D, 1994). There was much debate over the anticipated impact of NAFTA on the three trade partners. Between December 1996 and December 1999, U.S trade with china and Mexico tripled from a total of 14.3 billion per month (import and exports) to 47.2 billion per month in 1996 dollars. In Europe, the EU plays an even more pervasive role in business and trade among the member nations. While the United states, Mexico, and Canada have not given up substantial autonomy with respect to trade and business issues, the 15 members of the EU have ceded considerable economic, labor, and trade authority in an effort to develop consistent rules among member nations. Thus, labor laws, environmental laws, agricultural regulations, and myriad other rules apply to all members of the EU. Trade barriers have been removed. People, assets, and capital can move freely among member countries. On January 1, 1999, 11 members adopted a common currency-the euro-that will replace their national currencies. On January 1, 2002 the euro began circulating. The adoption of this common currency will facilitate trade and reduce transaction costs. It is also a statement of the shared destiny of the member nations (Cook WJ, 1990). Organizations exist within some form of economic system that exerts tremendous influence on them. There are, of course, many forms of economic order, ranging from mixed-private enterprise (i.e. capitalist) systems of North America, Western Europe, and Japan to centrally planned economies like those of china, North Korea, and Cuba. Numerous economies are undergoing fundamental transformations from central planning to some form of market-based economy. The extent of government control has an important effect on the types of organizations that exist and how those organizations are managed. Central planning often dictates the specific form of organizations as well as how the organizations will be managed. One problem many former communist countries faced as they moved from centrally planned economies to market economies was that they lacked financial institutions such as banks, brokerage firms, and equity markets. In market economies owners and managers decide on specific characteristics of organizations (Mintzberg H, 1971). Even in the relatively free market environments of North America, Western Europe, and Japan, government still exerts significant control over the economy. Political debate in the United States typically focuses on how much control over business and the economy the federal government should exercise (Walczak M, Dunham RS, 1994). Like every other elements of an organizations environment, the economic sector is constantly changing. For example, the German economy, renowned for its robustness, has experienced some difficulty since the early 1990s as a result from reunification. Unemployment rates increased to the level of unknown since World War II. Tight monetary and fiscal policies helped to drive up the value of German currency, making German products expensive in the United States. Some companies such as BMW and Mercedes Benz, have relocated manufacturing outside Germany while others have attempted to purchase U.S companies (Dwyer P, Miller KL, Neff R, 1995). From the early 1990s through the turn of the century, the once mighty Japanese company has stalled badly. Banks and the government have even resorted to interest-free loans to stimulate the economy, but little progress has been made. By contrast, the economies of France, Spain, and Ireland, once saddled with double digit unemployment, have recently shown signs of significant growth and robustness (Schechter MG, 2002). Part of the change in the economic sector is that economics has become more of a global issue and less restricted to local and national economies. Products that were traditionally developed and manufactured in the United States such as steel, motor vehicles, electronics, and heavy equipment are now made in many other locales. Many companies operate in multiple locations throughout the world. Sometimes products are developed in one nation, manufactured in another, and sold in still a third location. General Motors, Ford, Volkswagen, Honda, and Toyota, for example, manufacture and sell cars throughout the world and are and are affected by economic conditions in each of the countries where they operate (Brittain J, 1980). Ratification of NAFTA and the WTO, along with the EU’s move to a single currency (among 11 members) and unrestricted trade among members, increase the importance of global economies. Although local economies are still important, businesses cannot ignore global economic conditions (Felice WF, 2010). International conflict can bring about major changes in an organization, as it is likely to affect the economy or even international businesses. During the first half of the 1970s, the world economy has been buffeted by collapse of the international monetary system, the rise in oil prices, the boom in commodity prices in 1973 and 1974 and by unprecedented inflation, followed by a recession, in almost all major industrialized nations. In this unstable world economic situation, instability has been most marked in trade in primary commodities (Rangajaran LN, 1978). Organizations are affected by the economy and the economy can be affected by world politics, which can facilitate change in organizations directly or indirectly (Geomans HE, 2011). The end of the Cold War and globalization processes have led to renewed interest in the study of transnational relations and the impact of non-state actors on world politics. Some authors praise the emergence of a global transnational civil society (Boli and Thomas, 1999 Florini, 2000, Held, 1999), while others denounce an increasing transnational capitalist hegemony (Gill, 1995). Both positions ascribe to non-state actors quite an extraordinary influence on outcomes in international politics. It is certainly true that transnational actors — from multinational corporations (MNCs) to International Non-Governmental Organizations (INGOs) — have left their mark on the international system and that we cannot even start theorizing about the contemporary world system without taking their influence into account. But there is little systematic evidence to sustain claims that the transnational ‘society world’ has somehow overtaken the ‘state world’ (Czempiel, 1991,). Rather than analyzing transnational and interstate relations in zero-sum terms, it is more useful to study their interactions and inter-penetration. As Reinicke put it, ‘governing the global economy without governments is not an option. Yet for global governance to succeed, governments will also have to enlist the active cooperation of nonstate actors’ (Reinicke, 1998). The role of organizations in monitoring the implementation of national treaties, their relevance in the organization of development projects, and their importance in the representation and education of civil society has been acknowledged and valued by both international organizations and national governments. Nongovernmental actors also play an important role in the negotiations of international agreements. Moreover, many UN agencies work closely with organizations. Organizations have played an important part in numerous environmental conventions, and their role is becoming more clearly defined. The presence of organizations has also been instrumental in the evolution and development of many international trade agreements.
References
1. Robbins SP 2005, organizational behavior 2. Huber GP 1995, Organizational Change and Redesign 3. Richman LS 1993, When Will the Lay-offs end? 4. Hodge BJ 2003, Organizations 5. Taylor A 1994, The Auto-Industry meets the New Economy. 6. Wallerstein IM 1976, Semi-peripheral countries and the Temporary World Economies 7. Knopf AA 1987, Thriving On Chaos 8. Scott WR 1992, Organizations and Rational Natural and Open System 9. Williamson O 1981, The economics of Organizations 10. McGregor D 1960, The Human Side of Enterprise 11. Khorsow M 2006, Emerging trends and challenges in Organizations. 12. Edin M 2002, Challenges and achievements in E-Business and E-work 13. Harbrecht D 1994, Who has NAFTA Wrought? 14. Cook WJ 1990, Ringing in Saturn 15. Mintzberg H 1971, Managerial Work: Analysis from Observation 16. Walzack M 1994, The Conservative Agenda 17. Dwyer P, Lowry K, Neff R, 1993, Suddenly its Time to buy American 18. Schechter MG 2002,critical reflections on power, morals and civilization 19. Felice WF 2010, The global new deal 20. Brittain J 1980, Organizational life cycles 21. Rangajaran NL 1978, Political economy of International commodity 22. Geomans HE 2011, Leaders and international Conflict 23.

Similar Documents

Premium Essay

Organization Business

...structure consists of self-contained divisions. A division is a collection of functions which produce a product. It also utilizes a plan to compete and operate as a separate business or profit center. According to Zainbooks.com, divisional structure in America is seen as the second most common structure for organization today.[citation needed] Employees who are responsible for certain market services or types of products are placed in divisional structure in order to increase their flexibility. Examples of divisions include regional (a U.S Division and an EU division), consumer type (a division for companies and one for households), and product type (a division for trucks, another for SUVS, and another for cars). The divisions may also have their own departments such as marketing, sales, and engineering. The advantage of divisional structure is that it uses delegated authority so the performance can be directly measured with each group. This results in managers performing better and high employee morale.[citation needed] Another advantage of using divisional structure is that it is more efficient in coordinating work between different divisions, and there is more flexibility to respond when there is a change in the market. Also, a company will have a simpler process if they need to change the size of the business by either adding or removing divisions. When divisional structure is utilized more specialization can occur within the groups. When divisional structure is......

Words: 352 - Pages: 2

Premium Essay

Business Organization

...Business Organization George Amaro BUS 311: Business Law I David MacKusick July 11, 2016 Business Organization When the decision is made to start a business the next step is to decide on the type of business entity is to become. This decision is an extremely important one and can have lasting repercussions if all of the details of each business type are not known. Deciding on what type of business entity to have one will have to look at the different types of business structures and then decide accordingly. There are vast differences between the sole proprietorship, partnership, limited liability company (LLC), and corporation and understanding each is vital. A sole proprietorship is a business entity that is solely dependent upon only one owner. Once a business plan is made and the proper licenses have been obtained from the state that the business will be in the business entity has been formed. There are no other formalities or no other expense attached to the formation of this business entity (Rogers, 2012). Although this seems straight forward there are major downsides to a sole proprietorship. Two such downsides are those of taxation and liability. As a sole proprietor, you the owner and the business are considered one and will not be taxed separately; the sole proprietor would be responsible for the payment of all taxes, to include self-employment (U.S. Small Business Administration, 2015). Due to this small fact the sole proprietor would be......

Words: 1415 - Pages: 6

Premium Essay

Business Organization

...Business Organization In a joint-stock company, an entrepreneur raises capital by issuing stock certificates of its ownership. This normally involves selling shares of the stock to investors that guarantee them the right to a certain percentage of the company’s profits. Such companies include those that allow workers to invest in a 401k, which is beneficial to them. A limited liability company is a legal system that prevents creditors from seizing the personal wealth of a company’s stockholders to pay a company’s debts. If a company goes bankrupt, its creditors cannot seek the person’s wealth of its stockholders for reimbursement. This means that only the money the stockholders have initially invested in the business is at risk. An example of this is if a photographer at a photo shoot leaves a cord in the way and a customer trips over it, only the company would be sued and the photographer’s home, car, and assets are protected (Johnston, 2012). A partnership company is two or more skilled professionals who agree to pool their talents and capital to establish a company in which they are the stockholders and owners. An example of this would be an individual opening a clothing store and have partners who invest and have different skill areas such someone who does designs, someone to promote etc. A sole proprietorship is a non-incorporated business entirely owned by one person. A sole proprietorship is the simplest form of business organization to start and maintain. Such......

Words: 288 - Pages: 2

Premium Essay

Business Organization

...Business Organization Megan Jutras Bus 210 January 26, 2012 Karla Rogers Business Organization There are various forms of business organizations, such as joint-stock companies, limited liability companies, partnerships, and sole proprietorships. The following are examples of business scenarios for these four organizations. First, a business scenario of a joint-stock company would be a banker, who along with other bankers, which invest some money into an entrepreneur’s up-and-coming company. The banker would then receive stock in that venture (such as a shipping company). All the bankers, along with the entrepreneur, would share the company’s stock, thereby making it a “joint-stock” company. Secondly, a well-known limited-liability company would be Microsoft. Microsoft began as this type of company, which prevents creditors from seizing the personal wealth of Microsoft’s stockholders to pay the company’s debt. If Microsoft goes bankrupt, its creditors cannot seek personal wealth of its stockholders for reimbursement. Only the money stockholders have initially invested in Microsoft is at risk. Thirdly is partnership, which would be a dental office with two licensed dentists who partner together. They agree to pool their talent and resources by establishing the company in which they are the only stockholders and owners. The last business scenario is sole proprietorship, which would be my grandfather’s electricity company. This is a non-incorporated business entirely......

Words: 300 - Pages: 2

Premium Essay

Business Organization

...Business Organization Melanie Smith BUS/210 June 01, 2014 Shane Wenttz Business Organization Mamma Mel’s company structure will be that of a sole proprietorship. A sole proprietorship is one of the most common and simplest company structures to form as it is a one man, or in this case, one woman operation where in the owner (me) takes on all aspects of operating the business including all associated risks and liabilities. Some of the advantages to operating as a sole proprietor include inexpensive to form with legal costs being limited to obtaining necessary licenses and/or permits, Simple tax filing, tax rates are low and the business is not taxed as a separate entity and the owner of the business retains complete control of every aspect of the business. As with all business structures along with the advantages there are disadvantages as well for the sole proprietor these include difficulty raising funds due to the liability to sell stock, unlimited personal liability and the Heavy burden of maintaining profitability. A Business Model refers to the means and the methods used for the successful operation of a business indicating how the business will convert inputs such as labor and capital into outputs that will yield a profit for the business. Mamma Mel’s business model for the food truck will be a straightforward approach of providing fresh, handmade food items as quickly as possible. Once business increases and I am able to locate retail space I will......

Words: 396 - Pages: 2

Premium Essay

Business Organization

...Business Organization A joint-stock company is a partnership or corporation between two parties. An electronic company has stocks that are issued to each party in the company in return for each contribution. The shareholders are allowed to transfer or sell their investment at any point in time by selling their stock to another party. A limited liability Company is when the investors are only limited liable in case the business or the investors that were invested in go bankrupt. Creditors can only take what each investor has initially invested. If Joe invested into a company and the company went bankrupt after five years, because the company was an LLC, the creditors can only take what Joe has initially invested into the company. A partnership is when a group of professionals come together with their ideas to create one company. The people who own this type of company are the ones who are both the owners and the stockholders for the company. Each member owns a percentage of the company. If Jon, Jane and Mike open up an antique store, each party would own an equal percentage such as 33.3% of the company. Jon would be in charge of accounting, Jane would be in charge of supplies, and Mike would be in charge of marketing. A sole proprietorship is when it is a business owned by only one person. The person would be in charge of everything and is the only one reliable for the businesses ups and downs. If Matt was a dentist and wanted to open his own local dental business, he......

Words: 297 - Pages: 2

Free Essay

Business Organization

...Business Organization BUS 210 Bill Wigton Joint-Stock Company A Joint- Stock company is owned by shareholders, each one shares a portion of the company. For example; Mr. Equis designed a glass company that would specialize on building custom shower doors. He sets up a meeting with a group of possible investors, presents his business plans and offer to sale up to 40% of the shares in order to start the business he will keep control of the company by owning 70% of the shares. Limited Liability Company A Limited Liability Company is a form of company that provides limited liability to its on owners. For example; I worked for a company that managed the buildings was called “A&V, LLC”. This was a family owned business and this type of organization help to protect their own assets in case of any law-suits filed by the tenants. Partnership Partnership is a group of skilled professionals that agree to pool their talent and resources by establishing a company in which they are the only stockholders and owners. For example; my dentist Dr. Sardinas is part of a partnership with another dentist. Their Family & Cosmetic Dentistry group is a partnership in which they are both stockholders and owners. Sole Proprietorship A Sole Proprietorship is a non-incorporated business organization owned by one person. For example; “Jose’s landscaping”, this company is run and owned by Jose Martinez. He is the sole proprietorship of the business and......

Words: 258 - Pages: 2

Premium Essay

Business Organization

...Business Organization • Kenya L Allen Course# BUS/210 2/3/2012 Dana LA Fleur My entertainment company, Kytepromotions, pays fines for every little violation for every little incident. Since I am the sole proprietorship of my business, I must pay all the fines and attend courts when needed. I thought about going in to partnership with my uncle because he was the one that should me how to start the business. He is older than I am by a few decades and his ideas of how plan wedding and children birthdays are prehistoric. My uncle first got started by working with merchants dealing with party supplies. He then got me involved by helping with deliveries and that spark my interest. I started my business by having a master plan of becoming the biggest party planner on the west side of Detroit. This took a lot of patience and time; since I did not have any references, it was difficult to rent venues and since my name was not in the public, I had to promote myself. I passed out fliers and got my name across by going on the radio and putting ads in the newspaper. I offered the people that wanted to work for me options like a huge company would do. I let every......

Words: 386 - Pages: 2

Premium Essay

Business Organization

...My business organization is a non profit organization that buys houses and fixes them up to sell to low to middle income families. The organization consists of local people in the community whose sole interest is to revitalize abandoned neighborhoods, by giving honest hard working people the opportunity to be able to own their own home. Today’s housing market is overpriced, not every family can afford to live the American dream. The goal of our organization is to give every family the opportunity to be able to obtain affordable housing at reasonable prices. We buy homes that are in old run down neighborhoods because we are able to buy the real estate real cheap. Once the home is finished being renovated, the house goes on the market. The families combined annual income has to be anywhere between $30,000 and $55,000. After the house is sold the organization only makes a profit of no more than $10,000, which is reinvested in another home renovation. Business Rules • Every person will be treated with respect • Total combined income will be $30,000 – 55,000 • Credit checks will be performed on all potential buyers • The organization will profit no more than $10,000 • Background checks will be performed on all potential buyers • Only one home is to be sold per family • No more than 7 houses are to be sold each quarter • Potential buyers will use the organizations financing options • Potential buyers will have to take a 3 hour seminar...

Words: 445 - Pages: 2

Premium Essay

Business Organizations

...1. Three forms of business organizations are sole proprietorship, partnership and corporation. The sole proprietorship is the least regulated of the three. One person who keeps all of the profits owns it. The owner is also financially responsible for the business and its debts because there is not a division between personal and business assets and income. The life span of this type of business is limited to the life span of the owner and the owner’s own assets limit the amount of equity that can be raised. This can really limit the business, as it may not be able to seek new opportunities due to lack of funds. A partnership is a type of business similar to a sole proprietorship but is owned by two or more people. The owners have unlimited liability still, but it is shared. There are a few types of partnerships. In a general partnership the owners equally share the profits and debts. Each partner can be held accountable for the other partner’s decisions and actions relating to the business. When a partner wants out of the business or dies, then the company is terminated. In a limited partnership one or more of the owners is not involved in the day to day activities of the business. Their liability is limited to the amount they invest in the business. If the limited partner wants to get out their share can be sold to a new partner. In each type of partnership, the way the assets and debts are separated is dictated in the formal partnership agreement. The advantages and......

Words: 630 - Pages: 3

Premium Essay

Business Organization

...of license fees paid by the manufacturer. The allocations of the consumer’s fees to Frank and the manufacturer fees to Vila are special allocations. 3. Bill Hewlett and Dave Packard become lose friends during a two-week camping trip. Afterwards, with the encouragement by their professor at Stanford, they started HP. Hey were best friends with similar strengths and management styles; they complemented each other. They created a social, supportive work environment that contradicted the times. Their innovative work ethic enabled HP, its employs and their business partnership to thrive. 4. Kasie opens up “Kasie’s Creations” which is a catering company. She has a team of 10 that assist in prepping and cooking the food, delivering the food to the customers and also serving the food when the situation warrants. The team of 10 work directly for Kasie and she receives all profits and has unlimited responsibility for all business losses and gains. Kasie is he sole...

Words: 293 - Pages: 2

Premium Essay

Business Organization

...therefore is unlimited liability. A limited liability corporation states that the members of the company cannot be held accountable or liable for the company’s debts or liabilities. An LLC has the combined characteristics of a corporation and a partnership of a sole proprietorship. The limited liability feature is similar to a corporation by the availability of flow through taxation to the members of the LLC. An example of an LLC would be a self-employed business like my brother in laws, Steiny’s Garage. A partnership is two or more people who own a business equally. They share all the responsibility of the business between the members which includes the risks and the rewards. An example of a partnership would be the original Johnson & Johnson Company, before it became and LLC. (Johnson & Johnson) A sole proprietorship is the most common structure when choosing to start a new business. It is an unincorporated business that is owned and ran by one individual. The owner is entitled to all of the profit of the business, as well as the responsibilities of the debts, losses and liabilities. An example would be a small shop owner such as financial planner or plumber. "NYSE, New York Stock Exchange Listings Listings Directory NYSE." NYSE, New York Stock Exchange Listings Listings Directory NYSE. New York Sotck Exchange, 18...

Words: 362 - Pages: 2

Premium Essay

Business Organization

...My entertainment company, Kytepromotions, pays fines for every little violation for every little incident. Since I am the sole proprietorship of my business, I must pay all the fines and attend courts when needed. I thought about going in to partnership with my uncle because he was the one that should me how to start the business. He is older than I am by a few decades and his ideas of how plan wedding and children birthdays are prehistoric. My uncle first got started by working with merchants dealing with party supplies. He then got me involved by helping with deliveries and that spark my interest. I started my business by having a master plan of becoming the biggest party planner on the west side of Detroit. This took a lot of patience and time; since I did not have any references, it was difficult to rent venues and since my name was not in the public, I had to promote myself. I passed out fliers and got my name across by going on the radio and putting ads in the newspaper. I offered the people that wanted to work for me options like a huge company would do. I let every get a piece of what I started and told them that they would see profits at year’s end. I wrote out in detail how if everyone would invest back in my company like expenses for food and travel that it would pay off. Joint stock in the company I offered them. I never thought of this way. Years have past by now, we were in our 10th year, and things began to fall apart.......

Words: 301 - Pages: 2

Premium Essay

Business Organizations

...liability company Sole Proprietorship: * Liability – can be held independently legally accountable for any business-related responsibilities. * Income taxes- sole proprietors reports all business income or losses on their individual income tax return -- IRS Form 1040, with Schedule C for small business * Longevity/ Continuity- Sole proprietorships only exist as long as the owner is alive or decides on their own that they want to close it. * Control- Sole proprietorships are completely controlled the owner. * Profit Retention- Sole proprietorships don’t have to split their earnings with anyone. Profit retention of 100% lets sole proprietors to use the money the way they want. * Location- Sole proprietorships can set up wherever they would like * Convenience * No risk of fraud from a partner * Flexible hours * Can be started with little funds, completely up to the owner. * Can be started without lots of capital * Privacy from others * Full ownership and management control * IRS will allow sole proprietorships to take deductions for business expenses which in the end will lower the sole proprietor’s taxable income. * IRS will allow sole proprietorships to avoid being double taxed as a corporation. * Burdens * Owner is fully responsible for all business debts. If the business is not profitable or if a lawsuit ensues, courts may attach debt to the owners personal property *......

Words: 1572 - Pages: 7

Premium Essay

Value of Business Organization in Society

...BUS1010 ASSIGNMENT TITLE: The value of business organization creates society. Identify, summarize and discuss arguments against business. INSTRUCTOR: TABLE OF CONTENTS 1.0. Introduction 1.1. What is business? 1.2. Forms of business 2.0. Negative effect/impact of business. 3.0. Conclusion 4.0. References 1.0. Introduction The role and impact of business organizations in any society can be aggrandized to be a major factor leading to the growth and development of economy in various countries across the globe. Business as a human activity has been able to assemble people, capital and innovation under controlled risk-taking, in order to create jobs and produce goods and services profitably which translated to an amount of wealth for business owners, employees, customers and society at large. In Africa, business activities have tremendously contributed to the economic growth experience and these has been boosted by internal and external factors. Internally, the emphases on business organization to create domestic business friendly environments, greater business discipline, have formally written values and principles, and open prospect to transact business globally has led to the growth of the African economy. However, the role and impact of business activities also have negative effects on the society which will be discussed and properly elaborated. 1.1. What is business? The term business does not have a specific definition as......

Words: 1602 - Pages: 7