Business Structure
C-Corporation
In order for an informed decision to be made in regards to appropriate business structure for any business it is necessary to understand each business structure separately and any attempt to understand business structure must consider the C-corporation as a baseline against which to compare subsequent business structures. A C-corporation is a business organized as a separate entity from the owner or owners of the business that requires the observation of certain formalities. In Texas these formalities include adopting bylaws, maintaining a record of accounts, issuance of stock, recording the issuance and transference of stock, recording minutes of board of director and shareholder meetings, as well as maintaining a record of current and past shareholders (Tex. BOC § 21). It is important to remember that corporate formalities will require time and expense to maintain and every attempt should be made to comply with these requirements to protect the liability limitation of the corporation’s shareholders, officers, and owners.
Due to the fact that corporations are separate legal entities from their owners, C-corporations are taxed separately requiring the filing of IRS Form 1120 each year to report its income and take advantage of any credits or deductions for which the corporation may be eligible (Internal revenue Service (IRS), 2012b). Income tax rates for corporation are tailored to corporations and as such are different from those
Violet’s case is similar to the case Re Megevand; Ex parte Delhasse (1878) 7 Ch D 511 in which the court considered the creditor a partner of the business concerned given that the creditor (Delhasse) had the right to control the property, had all the rights a dormant business partner would be expected to have, and rights to share profits and liability to share in losses.
1.What are conversion factors? Why were conversion factors developed? How do they impact on which bond is cheapest to deliver? Under what conditions would there be no cheapest to deliver? Explain in detail.
Before the nineties the Coca-Cola company was having a centralize system of control, but after sometime they realized that if they had to meet the demands of the customers they should adopt a decentralized system in which the authority of decision making is distributed between different managers so that every sector can be managed effectively. This system was implemented in the nineties by the company’s board of directors. Now the organization is having two groups who are responsible for operating:
To start a corporation will take much time, determination, and will-power. This will not be an easy task but one that will have patience and support of family and friends.
Tyco international is a corporation that was founded in 1960 Arthur J. Rosenberg. It began as an investment and holding company that eventually expanded into Healthcare, Electrical and Electronics, Specialty Products and Fire and Security Services. Tyco became a solid publically traded company under its founder and leader Arthur J Rosenberg. Under his leadership, Tyco not just expanded but grew that between 1973 and 1982 the company went from $34 million to 500 million in consolidated sales. (Ferrell, Fraedrich, Ferrell, 2011).
Based upon your business needs we recommend you form a C Corporation for your new used car dealership. There are many reasons for this decision not the least of which is tax purposes. The C Corporation is a separate entity which means the business will pay its own taxes filing a form 1120 and you will be considered an employee eligible for a salary, bonus, and benefits.
The ownership claim in corporations is defined by the amount of shares owned and can be easily transferred by selling off the shares. Because individual share can be easily bought, raising capital is easier for a corporation than the other business structures, particularly in “S” corporations. In corporations, the stockholders are protected from the liabilities and debts of the company, although they pay higher taxes on the dividends received from the company. A corporation also ensures the continuity of life if one owner dies. A corporation has more legal issues to handle than the other business structures because it is large and publicly traded. Everything needs to be documented and filed and general meetings must be held at least per annum. All actions affecting the operations of the company, such as mergers and establishing new business ventures, must be discussed, recorded and filed. This also means that because corporations trade publicly, they are required to provide extensive financial statements such as the balance sheets, income statement, cash flow statement and retained earnings statement. They need these statements to attract more investors and increase capital. Corporations are also liable to the SOX
In contrast, to a C corporation an S corporation is subject to single taxation, since it is a pass-through entity. Having said this, an
The organizational structure of a business is a unique relationship formed when functional areas, defined by purpose and specific roles, are associated. Proficient organizations are capable of success because of fluent operations between stable functional areas. This portion of our business project will provide insight on the business structure of McDonald’s Corporation by analyzing the functional areas of business, taking into consideration factors like technology, the basic laws of economics, and some key aspects of management.
The organization that I currently work for is one of the largest department store retailers in America. With over 850 stores spread accross the entire country and an impressive online presence, there are many moving parts. Robbins and Judge (2015) remind us that "an organization 's size significantly affects its structure" (Robbins & Judge 2015, pg. 450). The structure of my company is a traditional bureaucracy. It is highly mechanistic with formal rules and regulations, narrow spans of control, high degrees of specialization and decision making that follows a chain of command (Robbins and Judge 2015). I am an Assistant Store Manager and report to the Store Manager and the District Vice President. There are 89 districts in my organization all with the same exact structure. The DVP reports to the Regional Director of Stores, who has a functional team very similar to the district team but at the Regional level. There are 8 regions in the country. The RDOSs report to the Chief Stores Officer who as a member of the Executive Committee reports directly to the CEO. There is a pyramid for nearly every function in the organization with established procedures for interactions between them.
Starting a business is a major step and can in some cases be very risky. Furthermore, there are a number of important factors that should be considered when starting a business. One of the most fundamental factors involved in starting a business is determining what business entity to operate the business under. Choosing a business entity that is not aligned with your particular business model can in many cases lead to several problems that can be potentially very costly. The four most common business entities are a sole proprietorship, partnership, LLC, and a corporation. Knowing which business entity is best for your new business venture can determine the future success of your company.
The structure of financial and business organizations have evolved over time, and the subject of remuneration of CEO’s has become a debate across society particularly during the global financial crisis. With the current economic situation, the debate over CEO pay has further intensified with more people questioning whether CEO salaries commensurate with their overall contribution to the value and overall success of the organization. A chief executive officer is a person within an organization’s senior management group who is employed at a corporate level (Perkins). It cannot be denied that CEOs have a great amount of influence over their company and are responsible for defining and executing a company’s strategy. Through their actions CEOs
In this report, it will refer to the business structure, balance sheet, income statement and accounting information and those is surround the case study to clarify every point. The case is a couple who is come from Malaysia and they want to open a restaurant in New Zealand. The report purpose is to delicate the comprehend about the four aspects.The report will be divided four aspects to help them solve the problem and analyse every aspect the influence and effect in an accounting. The reason for the report is classify the four aspects and get relationship between them. Those are the basic information for an accounting.
One thought is the organizational structure. It appears that the organization is genuinely robotic in its structure. This may not be the most fitting structure, given the way of the business. Since shoe outlines are changing so quickly, production changes setup are every now and again required. The organization is required to respond to environmental factors quickly. A more natural structure would permit this to happen. The stream of data and communication at present being utilized inside of the organization appears to be mixed. Now and again it takes after the recommended hierarchy of leadership despite the fact that persons in a specific order perform no helpful capacity.An undeniable test confronted by Olsen is to move far from a framework that has existed for more than 30 years. The workers are as of now content with the way the organization is working regardless of the fact that it gives a bigger number of constraints and differences than embracing an ERP. The methodology that would draw to their advantage would be full preparing of the framework, occupation update and improvement with obligations regarding Foremen, the simplicity of holding data and giving feedback to administration and open doors for development and advancement inside of the association for all workers. Each of these worker motivators would render better occupation fulfillment for both Lawson and Flynn and would facilitate a percentage of the coordination and collaboration issues managers and
Sole traders have unlimited liabilities,meaning that in terms of law there is no separation between them,hence the sole trader is also liable for the debts incurred within the business, which makes it very risky to run for a long-term.