...business ethics that have done much to shape the subsequent discussion in the field. Velasquez’s "International Business, Morality and the Common Good" 1992 paper takes business ethics to be concerned centrally with questions about the corporation's proper role in and relationship to the social order. These questions are said to surround the moral status of the corporation: Is the corporation a moral agent? Do multinational companies have any moral obligations to contribute to the international common good? While dominant management thinking is steered by profit maximization, this paper proposes that sustained organizational growth can best be stimulated by attention to the common good and the capacity of corporate leaders to create commitment to the common good. However, the complex process of re-orientating corporate priorities towards the common good requires alertness and concerted effort if both business and society are to truly benefit. In our contemporary post-modern context, it has become increasingly awkward to talk about a good that is shared by all. This is particularly true in the context of multi-national corporations operating in global markets. The common good dictates that leadership should be judged, first of all, according to moral criteria rather than professional competence. It helps correct the distorted prioritization of the maximization of profit in every business decision, recognizing that businesses have a multitude of rights and responsibilities, and the...
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...limited liability corporations. Limited Liability Partnerships A limited liability partnership, commonly abbreviated as an LLP is a business organization made up of partners. However, a limited liability partnership has the characteristic number of partners who have limited liabilities. According to Boone and Kurtz (2011), these specific partners are not therefore liable for the financial responsibilities of the partnership. This is the feature that introduces the unique role of the limited liability partnerships as business organizations that protect the personal estates of the limited liability partners. Another role of the limited liability partnerships is to generate financial value to the partners with limited liability partners. It is the responsibility of every business to generate business value to the owners and other stakeholders. The business value involves generation of profits for the active partners and the limited liability partners (Boone & Kurtz, 2011). According to Pride et al (2011), the owners of the limited liability partnerships are not personally liable for the debts or financial obligations of the business. Therefore, the limited liability partnerships have a critical role of generating business value that can be able to pay off the business obligations. This will leave the owner of the business unit from the burden of holding a failing business. Limited Liability Corporations A limited liability corporation (LLC) is a business...
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...Title: Fiduciary obligations may spring up by reason of relationships of trust and confidence or confidential relations. Introduction Fiduciary is an important issue arises in business relationships, in partnerships, it helps create a fair business environment for all the parties when working together, in agency, it protects the principles' benefits, in corporations, it may lead the business operates properly and legally. Therefore, fiduciary obligations are closely related to co-operations Trust and confidence are the most important elements in these fiduciary relations, in this essay, the relationship of a fiduciary obligation and above relations will be demonstrated and explained. Table of Content Introduction P.1 Table of Content P.2 The Basic Concept of Fiduciary P.3 Fiduciary Concepts and Obligation vs Partnership Relations P.6 Fiduciary Concepts and Obligation vs Corporate Relations 1. Directors P.8 2. Promoters P.11 Conclusions P.13 Bibliography P.14 The Basic Concept of Fiduciary Fiduciary, under oxford’s dictionaries’ definition, is trustee who is given control or powers of administration of property in trust with a legal obligation to administer the beneficiary’s interest, and the Cambridge dictionary defines “relating to the responsibility to look after someone else's money in a correct way”. It is obvious that the fiduciary concept involves the element of mutual...
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...Lit1 Task 1 Organization of Business Sole Proprietorship: Most common form of business today. Legally speaking the sole proprietor and the business are one in the same. Any legal issues such as law suits and tax liabilities are the same and the sole responsibility of the owner. There is no autonomy, no differentiation between the business and the owner. If the business gets sued, it is the personal assets of the business and the owner that are in jeopardy. It is also the easiest form of business to start and to end. A sole proprietor needs to obtain the appropriate licenses for the state and/or municipality in which they wish to do business then, they are up and running. All revenue is personal revenue for the owner. Any bills are paid by the owner. The business can be closed as easily as it was opened. Just stop doing business. The business cannot be passed on to anyone, when the owner dies the business dies. Any loans needed to do business will be in the form of personal loans from a bank since the business and the owner are one in the same. The owner’s credit worthiness is the businesses credit worthiness. Since the owner of the sole proprietorship and the business are one in the same, there is no need for agreements or contracts. General Partnership: Unlike a sole proprietorship, a general partnership is formed with an agreement between the parties involved. General partnerships are formed when two or more people agree to open a business and contribute...
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...livelihood, and the widespread health problems including 1,400 related deaths. When Chevron took over Texaco in 2001, they acquired this lawsuit. Today, Chevron is not involved in producing oil in Ecuador. A. One of the issues following Chevron is whether or not Chevron had the proper jurisdiction as a corporation to operate outside our national borders, in Ecuador. As a corporation the first step in moving operation into other countries, is first receiving approval form the share holds. Corporations must seek proper approval from there shareholders before seeking many changes. Corporations often engage in an acquisition of other corporation by a friendly merger. A merger happens when two corporation come together. One corporation is absorbed into the other corporation. However the merged corporation ceases to exist, leaving the surviving corporation. The surviving corporation automatically gains all the rights, privileges, powers, duties, obligations, and liabilities of the merged corporation (Cheeseman Pg.642). During the merge one corporation can pick up all shares of the other corporation through a share exchange. However in the share exchange both corporations retain their separate legal existence. When the share exchange is...
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...| How Businesses Are Taxed | Businesses have to pay federal income tax just like individuals. However, different business entities are taxed differently. Understanding these basic differences will help you to identify federal income tax obligations as you conduct business with different business formations. Income taxation can impact commercial transactions between different kinds of businesses, such as sole proprietorships, partnerships, franchised, and corporations. Sole proprietorships A sole proprietorship is a small business owned by a single individual. The owner is the business; the business is not a separate legal entity. The federal income tax obligation to be aware of when conducting business with sole proprietorships is that the sole proprietorship pays income tax only once on the income of the business, which the owner reports on his personal income tax form. There is no separate tax-filing requirement for the business itself. Since the sole proprietor is the business, he is responsible for the same income tax obligations as are most individuals. He does get the benefit of all business deductions, which he can write off against his personal income. In a good year, the owner of a sole proprietorship may want to make capital purchases, and defer payments from creditors until after the end of the tax year, so that he can offset assets and liabilities against his tax burden. Partnerships In a partnership, two or more people agree to combine their money, ideas, skills...
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...liability. • INCOME TAXES – All income generated through sole proprietorships is considered ordinary personal income tax to the owner and is subject to the highest rate of taxation by the Internal Revenue Service. • LONGEVITY/CONTINUITY – Because the business owner and the business are the same legal entity, the business will dissolve upon the death of the owner. However, it is possible to sell or give the business to someone else. • CONTROL – Since there can be no business partners in a sole proprietorship, all control of business decisions rests with the owner. • PROFIT RETENTION – All profits generated from a sole proprietorship are income for to the business owner after all the business debts and obligations are satisfied. • LOCATION – There are no legal requirements to start a sole proprietorship on a federal level however each state has different requirements for filing for licenses and permits. • CONVENIENCE/BURDEN – The convenience of having a sole proprietorship is that the owner has full control of the business in every way. The main problem with sole proprietorships is that they are difficult to get funding for which increases the difficulty of starting a business. GENERAL PARTNERSHIP: • LIABILITY – As each of the business partners is jointly and severally liable for any and all business debts and liabilities. Their personal assets can be used to satisfy business debts regardless of knowledge of wrongdoing...
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...of earning a return on that investment in the form of more money, not in the form of social and moral gratitude from every stakeholder involved with the corporation. Management must take that intention and do their best to see that it is realized. To do so they have to be concerned with the opinions and feelings of all of the stakeholders associated with their companies. If a management team operates a corporation in a way that they show the stakeholders that they are only concerned with the bottom line, then those same stakeholders, and more specifically the consumers, will react to that in negative ways. Theyll look for substitutes to the corporations products or determine that they can live without the products and thereby lower the corporations revenues. If the corporation is not run environmentally efficiently then the towns and cities that are home to the corporations factories and offices will no longer welcome them and may take measures to force the corporation out of their towns. If the corporation habitually takes advantage of its suppliers, theyll look for new customers and stop doing business with the corporation in question. This would force the corporation to expend resources and assets to find new suppliers or to fill the gap that the lost supplier once filled. These are merely three examples of why a corporation should be socially responsible when it conducts business, but by no means do they...
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...strategic and multi-fiduciary. Paradoxically, the former appears to yield business without ethics and the latter appears to yield ethics without business. The paper concludes by suggesting that a third approach to stakeholder thinking needs to be developed, one that avoids the paradox just men* tioned and that clarifies for managers (and directors) the legitimate role of ethical considerations in decision-making. So we must think through what management should be accountable for; and how and through whom its accountability can be discharged. The stockholders' interest, both short- and long-term, is one of the areas. But it is only one. Peter Dnicker, 1988 Harvard Business Review W HAT is ethically responsible management? How can a corporation, given its economic mission, be managed with appropriate attention to ethical concerns? These are central questions in the field of business ethics. One approach to answering such questions that has become popular during the last two decades is loosely referred to as "stakeholder anaiysis." Ethically responsible management, it is often suggested, is management that includes careful attention not only to stockholders but to stakeholders generally in the decision-making process. This suggestion about the ethical importance of stakeholder analysis contains an important kernel of truth, but it can also be...
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...MANDATE Mandate =Representation; Many types of mandate; lawyer; corporate directors; Mandate=Agency Mandator=principal Mandatary=Agent 2130 C.C.Q. Definition Mandator: Grants powers to represent him; Mandatary: Receives power to represent; Must accept the powers and then must exercise the functions or duties Power of attorney: Refers to the document or the power itself 2131 C.C.Q. May have different objectives Accomplishment of an act: i.e. sign a document or transaction on behalf of mandator; Administer all or part of the patrimony of mandator: i.e. administer a building or business or even all his assets while away; Assure physical or moral well being in the event of incapacity; administer patrimony in the event of incapacity 2132 C.C.Q.:Acceptance: Express (in writing) Tacit: presumed from: Acts accomplished; Even silence (i.e. reception of assets to care for and doing nothing) 2133 C.C.Q. Gratuitous: for free No payment This is presumed between natural persons Onerous: for a fee Presumed for a professional mandate I.e. lawyer, trust company 2134 C.C.Q. The contract may state remuneration. Failing which, by usage or law (Court may set) 2135 C.C.Q. Special mandate: For A particular or specific act General mandate: All the mandator’s patrimony This confers only powers of simple administration unless express powers are specified. i.e. sell property Incapacity: confers powers of full administration 2136 C.C.Q. Mandate...
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...Memo To: Head Accountant of Tyler Corporation From: xxxx, Assistant Accountant of Tyler Corporation Date: January 15, 2011 Re: Classification of Note Payable on the December 31, 2010 Balance Sheet After checking the Generally Accepted Accounting Principles, I want to explain how to classify the $100,000 note payable on the December 31, 2010 balance sheet. According to Accounting Standard Codification 470-10-45-14, “A short-term obligation shall be excluded from current liabilities if the entity intends to refinance the obligation on a long-term basis”, and “After the date of an entity's balance sheet but before that balance sheet is issued or is available to be issued, a long-term obligation or equity securities have been issued for the purpose of refinancing the short-term obligation on a long-term basis. If equity securities have been issued, the short-term obligation, although excluded from current liabilities, shall not be included in owners' equity.” Tyler Corporation has the same situation above. On January 5, 2011, Tyler Corporation sold 2,000 shares of its $10 par common stock for $80,000. It intends to use these plus $20,000 cash on hand to repay the note payable on March 6. Therefore, the company should get $80,000 common stock out of owner’s equity and report the $80,000 as note payable in long-term liabilities on the December 31, 2010 balance sheet. For the $20,000 cash on hand, the company should report it as note payable in current liabilities on...
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...on partners. I am interested and willing to learn the intricacies of my options to determine how to best proceed with my plan. Please advise on what my options are, the advantages and disadvantages of each, and possible tax consequences for each scenario? Respectfully, John Owner Business Structure: Advice Letter July 21, 2014 Dear Mr. John Owner, John, I am in receipt of your letter, and wanted to get back to you with a response to some of your questions. When beginning a business, “YOU” as the owner, must consider what form of business entity to establish. Your business structure determines which income tax return form you have to file. The most common forms of businesses today are the Sole Proprietorship, Partnership, Corporation, and S Corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. John, you want to generate revenue of course, but you also have to protect any personal assets you may have in the event of a lawsuit. When I refer to personal assets, I am referring to your house; savings; retirement; car and any other possessions that have significant value that can be attached to a lawsuit. John, it sounds like you are just in the initial stages of formulating your business. I am going to share with you some basic answers to your questions, however, I would recommend highly to develop a business plan for the type of business you finally decide on. Whether you fund yourself or need to secure funding through...
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...Introduction: The three basic legal forms of businesses in the United States are Sole Proprietorships, Partnerships, and Corporations. However, each of these forms can have variations and a hybrid called a limited liability company can be formed in all US States that exhibit the characteristics of both a partnership and a corporation (American College, n.d.). The following are some of the forms of business existing in the United States and their characteristics: a. Sole proprietorship b. General partnership c. Limited partnership d. C-corporation e. S-corporation f. Limited Liability Company This report contains an overview of some of the forms of business organizations that exist in the United States. Because of the federal system of the U.S., the many forms of business organizations are subject to the laws and regulations of the state where they operate or are registered. Both federal and state taxes are also taken into account by business owners and financial advisors in the choice of the business form (Perez, 2009). Liability, tax consequences, and legal implications are generally the most important actors business owners consider when choosing a business form. a) Sole Proprietorship The most basic of the forms of business organization is the sole proprietorship where the business is owned by a single person. There are more registered sole proprietorships in the U.S. than the other forms of business. In addition...
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...University of Hamburg Summer Semester 2014 The UN Guiding Principles on Business and Human Rights-Introduction, practical relevance and critical analysis Xiaoxiao Ding Master in International Business and Sustainability ABSTRACT: due to the increasingly significant influence of the transnational corporations in industrial and commercial fields in modern society, especially in the spheres of environment and labor protection, more and more cases raised involving their infringements of the international human rights laws. On June 16, 2011, the United Nations Human Rights Council endorsed Guiding Principles on Business and Human Rights, providing guidance for the implementation of the United Nations " Protect, Respect and Remedy" Framework. In the form of " Soft Law", these principles specify what business enterprises should do to respect human rights and how to prevent the violations on human rights. This paper identifies the main idea of these principles, gives relevant practical references and analyzes these principles with a critical perspective. Contents 1. Introduction .............................................................................. 2 2. The development and content of UN Guiding Principles......... 3 2.1 Historical development of UN Guiding Principles ........................ 3 2.2 The main idea of the UN Guiding Principles ................................. 4 2.3 The legal framework of the UN Guiding Principles ...................... 5 3. Practical...
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... Branch 144 in a case for estafa under Section 13, Presidential Decree No. 115. The Court of Appeals Resolution of 18 October 2000 denied petitioners motion for reconsideration. The Facts Petitioners Jose C. Tupaz IV and Petronila C. Tupaz (petitioners) were Vice-President for Operations and Vice-President/Treasurer, respectively, of El Oro Engraver Corporation (El Oro Corporation). El Oro Corporation had a contract with the Philippine Army to supply the latter with survival bolos. To finance the purchase of the raw materials for the survival bolos, petitioners, on behalf of El Oro Corporation, applied with respondent Bank of the Philippine Islands (respondent bank) for two commercial letters of credit. The letters of credit were in favor of El Oro Corporations suppliers, Tanchaoco Manufacturing Incorporated[3](Tanchaoco Incorporated) and Maresco Rubber and Retreading Corporation[4] (Maresco Corporation). Respondent bank granted petitioners application and issued Letter of Credit No. 2-00896-3 for P564,871.05 to Tanchaoco Incorporated and Letter of Credit No. 2-00914-5 for P294,000 to Maresco Corporation. Simultaneous with the issuance of the letters of credit, petitioners signed...
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