...Partnership or Corporation 1. What are some of the advantages and disadvantages of Thomas and Bryan forming a corporation? First of all, a corporation is a legal entity, created by the state, whos assets and liabilities are separate from its owners. It has some rights, duties, and powers of a person, as well as the rights to receive, own or transfer property. It is also important to mention that corporations are typically owned by many individuals and organizations who shares of the business, called stock. After this, I found some advantages or disadvantages for Thomas and Bryan if they want to form a corporation. Disadvantages: First of all, they will not be able to form a corporation in any State of the U.S. According to the law, there are some states in the U.S. that do not allow corporations owned by only two individuals. Information play an important role in any corporation, it takes a long time, as well as a lot of money to make annual reports with financial information of the office theys want to put, the flowers, and all that stuff, that is probably going to take a good part of the $10,000 of their initial contribution. Fees and formality will be some other disadvantages of turning the business into a corporation, considering that the Capital contributed was not a big amount. Finally, we cannot forget that corporations have potential double tax consequences (once when the company makes its profit, and a second time when dividends are paid to shareholders),...
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...qualities, analysis of growth and history, exploration of impacts, and brief look at the future of the modern business corporation. The documentary defines a corporation as a legal person, explaining that is has most of the legal rights a person has such as borrowing money and managing property. The film was released around the time of major corporate scandals, such as Xerox, Enron, and WorldCom, and uses the metaphor “bad apples” to state that there are more than a few corporations that are bad. The film argues that if corporations were people, they would have psychopathic personalities. It then states that corporations have become a vessel which good and bad people can cause harm to society because of the way corporations have evolved and how they are protected. The Corporation film is concerned with the role corporations have in modern society its impact, or the corporate social responsibility. The film explores how corporations have been poisoning the earth as well as consumer minds and how the government is intended to look over and control these corporations. It looks into some of the unethical business practices and strategies executed by corporations and the externalities that are created to satisfy the main goal of the corporation: to maximize profit and market share. 2. Body A major social issue that was brought up in this film is the way that corporations treat foreign factory workers. The film is concerned with the rampant use of sweatshops by large businesses. The use...
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...CORPORATION * A Corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence. Attributes of a Corporation * A Corporation is an artificial being with a personality separate and apart from its individual shareholders or members. * It is created by operation of law. * It enjoys the right of succession. * It has the powers, attributes and properties expressly authorized by law or incident to its existence. Advantages of a Corporation * The corporation has the legal capacity to act as a legal entity * Shareholders have limited liability. * Its management is centralized in the board of directors * It has continuity of existence. * Greater ability to acquire funds. Disadvantages of a Corporation * A Corporation is relatively complicated in formation in management. * There is a greater degree of government control and supervision. * Its requires a relatively high cost of formation and operation * It is subject to heavier taxation than others forms of business organizations. * Transferability of shares permits the uniting of incompatible and conflicting elements in one venture Classes of Corporations * Stock Corporation Corporations which have share capital divided into shares and are authorized to distribute to the holders of such shares dividends or allotments of the surplus...
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...Introduction A corporation is a legal entity that is created under the laws of a state designed to establish the entity as a separate legal entity having its own privileges and liabilities distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter (i.e. by an ad hoc act passed by a parliament or legislature). Most jurisdictions now allow the creation of new corporations through registration. An important (but not universal) contemporary feature of a corporation is limited liability. If a corporation fails, shareholders normally only stand to lose their investment and employees will lose their jobs, but neither will be further liable for debts that remain owing to the corporation's creditors. Sole- Proprietorship A business structure in which an individual and his/her company is considered a single entity for tax and liability purposes. A sole proprietorship is a company which is not registered with the state as a limited liability company or corporation. The owner does not pay income tax separately for the company, but he/she reports business income or losses on his/her individual income tax return. The owner is inseparable from the sole proprietorship, so he/she is liable for any business debts also called proprietorship. A business can be set up in a variety of ways, ranging from a sole-proprietorship to a general partnership, an LLC to a corporation. Corporations...
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...The Corporation: The Corporation is today's dominant institution, creating great wealth but also great harm. This 26 award-winning documentary examines the nature, evolution, impacts and future of the modern business corporation and the increasing role it plays in society and our everyday lives. The birth of the corporation: How the corporation came to be. Originally, corporations were set up to serve the public good. Corporation lawyers gained rights through the US Supreme Court using the 14th Amendment (set up to protect slaves) that gives them the rights of a person. In the last century, the corporation is given more and more rights while people are increasingly stripped of theirs. Origins of Corporations Although definitions and descriptions of corporations have changed dramatically through the last few hundred years, the first corporation actually began long ago – as early as the sixteenth century. It was a benchmark in the history of money and business, transforming an economy from what was essentially a debt economy (when it came to merchant work) to a state-sponsored enterprise. This type of business was brilliant and revolutionary for the early business world, allowing businesses to take risks and expand in ways they had been unable to do before. The concept spread and grew, and by the seventeenth century, the corporation was well on its way to being an acclaimed and established center for regular commerce. When corporate business came to the newly born United...
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...Corporations – Study Notes - A corporation is a legal entity that is separate and distinct from its owners - It has the rights and privileges of a person (exceptions: voting, hold public office, marry) - A corporation has the same duties and responsibilities as a person - It must respect the laws and pay income taxes - Corporations may be organized for the purpose of making a profit - Not-for-profit corporations are organized for cultural, social, charitable, medical, educational, and religious purposes - A publicly held corporation may have thousands of shareholders - Its shares are traded in an organized securities market such as the Toronto Stock Exchange - Most of the largest Canadian corporations are publicly held - A private corporation (closely held corporation) has only a few shareholders and does not offer its shares for sale to the general public - Crown corporation is similar to a privately held company except that it is owned by the government (Canada Post, GO Transit) Characteristics of a Corporation Separate Legal Existence - The corporation acrs under its own name rather than in the name of its shareholders - Corporation can buy, own and sell property. They can borrow money and enter into legally binding contracts in its own name. May sue or be sued and pays its own income tax. - The acts of the owners (shareholders) do not bind a corporation unless these owners are duly appointed agents of the corporation Limited Liability of Shareholders - Creditors...
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...business). This system applies to the business S-corporation-called the "C-corporation" (C-corp) for reasons we'll see shortly-and the system of taxing first the corporation and then its owners is called the "corporate double tax." "Pass through" taxation. The entity (called a "flow-through" entity) is not taxed but its owners are each taxed (more or less) on their proportionate shares of the entity's income. The leading forms of pass through entity (further explained below) are: Partnerships, of various types. "S-corporations" (S-corps), as distinguished from C-corps. Limited liability companies (LLCs). A sole proprietorship such as John Doe Plumbing or Marcus Welby, M.D. is also considered a pass through entity even though no "organization" may be involved. The first major consideration (in this case, a tax consideration) in choosing the form of doing business is whether to choose an entity (such as a C-corp) that has two levels of tax on income or a pass through entity that has only one level (directly on the owners). Losses are directly deductible by pass through owners while C-corp losses are deducted only against profits (past or future) and don't pass through to owners. The major business consideration (as opposed to tax consideration) in choosing the form of business is limitation of liability, that is, to protect your assets from the claims of business creditors. State law grants limitation of liability to corporations (C and S-corps), LLCs, and partners in certain forms...
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...Abstract The problem to be investigated is the role of corporation in society and its ethical influence on social responsibility. There have been arguments that capitalism and corporations are responsible for economic ills of the society. It is therefore necessary to understand the role of corporation and ethical influence if any. In other to address the problem stated above it is necessary to define what capitalism and corporation are, and give background insight through meaningful literature reviews. According to dictionary.com capitalism is an economic system in which investments, ownership and means of production, distribution, and exchange of wealth is driven and maintained mainly by private individuals or corporations, in contrast to cooperatively or state-owned means of wealth. A corporation on the other hand is a business organization created by its owners known as stockholders under authority of the law to exist continuously independent of its members; powers and liabilities (limited liability) separated from those of its members.(American Heritage Dictionary). The answer to the problem stated above may be embedded in the "not a cold mete or fallen from the sky" statement of Dr. Novak (Jennings, 2012, p.108). Role of Corporation In Society The problem to be investigated is the role of corporation in society and its ethical influence on social responsibility. There have been arguments that capitalism and corporations are responsible for economic ills of the society It...
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...AON Corporation LaDeanna Guy MGT 521 November 27, 2011 U of P – Clance Doelling AON Corporation SWOT Analysis AON CORPORATION COMPANY PROFILE In 1919, William Clement Stone formed Combined Insurance Company of America. In 1960’s Pat Ryan formed the Ryan Insurance Group. The two later merged in 1982 and 5 years later in 1987 the company was renamed to Aon meaning oneness, a Gaelic word. The ticker symbol on the New York Stock Exchange is AON. ACE Limited brought the corporation for $2.4 billion in April 2008. At the end of December 2010, Aon reported revenues of $8,512 million increase of 12.1% from the previous year. The operating income was $1,059 million increase of 11.6%. However, the net profit was $706 million which result in a decrease of 5.5% from the previous year. The company did experience a slump in 2002 when Securities and Exchange Commission questioned their accounting practice by taking a write-off of $56 million in the last quarter of 2001. Around this time Aon expenses increased as well and competition was succeeding. This caused investors to be on edge. Aon begin to conduct a global re-organization. The restructure entailed actions that were intended to streamline the organization and improve ability to serve clients. The plan was to result in $240 million of annualized savings by 2010. (Aon2) This resulted in a more profitable growth and higher cash flow. In 2010, Aon total executive compensation payout was $61,191,960. This was an increase...
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...Assignment 2: Integrating Culture and Diversity in Decision Making: The CEO and Organizational Culture Profile at Xerox Corporation Johan Patel Dr. Carla Henryhand BUS520: Leadership and Organizational Behavior November 30, 2014 Introduction What is a company that comes to mind when thinking of a world-wide leader in office printing and supplies? Xerox Corporation is the leader in business process and document management solutions. They provide goods, such as printers, copiers, and fax machines, as well as services, such as document management, solution planning, and application design and development services (Professional Support Services, 2010). They are located in 180 companies and provide these goods and services throughout the world. Culture The culture that is present at Xerox Corporation is unique to those of its competitors. The CEO for the company is a female that has been with the company for a long time and it is rare to see females in that type of leadership role. Also, Xerox has over 140,000 employees all over the world and that gives them a cultural edge over the competitors (Xerox Diversity, 2009). With the different goods and services that Xerox provides, they have multicultural expertise in fields such as healthcare, IT, transportation, document management, and HR. Also, by bringing in cultural differences into the company, they are able to get different viewpoints of how things might be more effective if done a certain way. Xerox has made three commitments...
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...Issue Andrew, Brian, Colin, Diana and Elizabeth are the directors of Pandora Diamonds, which decided becoming more competitive. Therefore it needs to expand its business and it feels with the increased volumes of sales it would be able to lower its prices and become more competitive. It retained a $4 million dollar loan from Bonza Bank Ltd. $3 million is used to buy more stock and $1 million is used to buy a large new warehouse and showrooms from Space Solutions Pty Ltd. However, there are few directors were not really care about the company. Colin was not present at the meeting when these decisions were made. Elizabeth had not attended the meeting as usual but signed the requisite documentation agreeing to the expansion of the business and the getting of the loan. Diana who attended, said she did not know if she agreed and abstained from voting. Andrew and Brian both voted to go ahead with the expansion and the getting of the loan. At about this time Brian had established contact with Victor, who was setting up a new business as a jewellery retailer. Victor was looking for reliable suppliers, but said he would not deal with Pandora Diamonds and Gems Pty Ltd as he did not like Andrew, the Managing Director. Not wishing to miss out on such a lucrative business opportunity, Brian arranged to set up his own business as a jewellery wholesaler and a contract was entered into between Victor and Brian for the supply of jewellery. Six months later, Brian resigned as a director...
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...Performance Management and Organisational Structure – A&G 11-3: CUP Corporation Team A’s Questions 1. What performance management systems (PMS) could CUP Corporation use to measure CCC’s performance? Which PMS is most appropriate? Explain and justify your answer. CUP Corporation could use a balance scorecard as its performance management system, this is the most appropriate as it can be linked it with their key success factors of CCC. In which 4 perspectives must be considered. Firstly financial perspective- the company has to consider how CCC is doing for shareholders via increase in firm’s sale, income growth, cash flow as well as profit margin, the centre has to improve agent channel. CCC needs to communicate well with all agent channels to make the sale more smoothly. The CCC also needs to update the information to all agents, training them on how to deal with customers and how to give the correct and most updated information to customers- also for time accessibility. When customers receive the correct information from the agents, they decide to make contact with...
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... I think that Singh should increase the company debt borrowings instead of using the investor funds, because in this case the WACC will become smaller, hence the company will be able to generate more profitability and have more funds for investing into new opportunities. This will ultimately increase the corporate value of Deluxe Corporation. 2. How could Singh achieve financial flexibility? I think that Singh can achieve to financial flexibility by borrowing more money. As the calculations show in the case of downgrading their bond rating to an A, this will provide ample borrowing cap to the company, c. $556.9 million, which is 3.45 times bigger than the current total debt outstanding of $161.4 million. In this case the company should have the chance of keeping free funds in their borrowing accounts, hence should need be to grasp of an occurred opportunity, they can finance it from their debt. Therefore increasing the total debt of the corporation will enable the firm to become more financially flexible. 3. What are the reasons why the bond rating is important for Deluxe Corporation? The bond rating is important to Deluxe Corporation because: • Bond ratings first of all provide a corporate image/brand name to company, • They are an index in order for investors to distinguish between the valuable and junk bonds, hence providing them important information to buy them or not. • Bond rating index is a measure of the company’s ability of meeting its liabilities....
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...of the Learner’s without properly citing the source of the work will be considered plagiarism and will result in an unsatisfactory grade for the work submitted or for the entire course, and may result in academic dismissal. | | | |7019-8 |McAllister, Chad | | | | |MGT |Case Study: Michael Novak: Capitalism and the Corporation | | | | Faculty Use Only Case Study: Michael Novak: Capitalism and the...
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... Moreover, the reduction would in effect diminish the pool of funds available to the company to pay its creditors. The rule in Trevor v Whitworth has been incorporated into Ch 2J of the Corporations Act 2001.Certain provisions of the Corporations Law 2001 seek to enforce the rule Trevor v Whitworth. There are a few Sections of the Corporations Act 2001 that enforce the maintenance of capital principle (or the rule of Trevor v Whitworth). Section 254T of the Corporations Act 2001 stated that a dividend may only be paid from profits. The Section 254T of the Corporations Act 2001 states that a company must not pay a dividend unless: the company’s assets exceed its liabilities before the dividend is declared and the excess is sufficient for the payment of the dividend, and; the payment of the dividend is fair and reasonable to the company’s shareholders as a whole and; the payment of the dividend does not materially prejudice the company’s ability to pay its creditors. This means that a dividend can be sourced otherwise than from profits. Moreover, Section 259 A of the Corporations Act 2001 prohibits self-acquisition. A company directly acquiring its own shares is prohibited. Nevertheless, this prohibition is subject to exceptions where a company is allowed under Section 257A of the Corporations Act 2001 to buy back shares if:...
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