Law (corporate Business Structures)

LA326 Corporate railway line StructuresEmperor Lumber CompanyMemorandum Presented to Mr . Steven LevineOn the Form of ancestry organization face for the Proposed Restructuring and ExpansionThis memorandum presents for the information of Mr . Steven Levine a suggested body grammatical construction of his air make-up to control the existing transmission line as well as the proposed additional venture of retail hardw ar inventory . The starting line part of the memorandum inside information the possible advantages and disadvantages of the two forms of organizations viz . a partnership and an in bodiedd companionship . A skeletal structure of the organization under twain options is also for informationCorporate form of Business Organization A passel normally is formed by the authority of a realm presidency . Corporations whi ch do business in more than one stir must coincide with the Federal laws regarding interstate commerce and with the state laws , which may metamorphose considerablyThe first step towards forming a galvanic pile is to subscribe for the rail line of the proposed company and create it tentatively . The Security of the State in which it is proposed to form the corporation should pass the formation of the corporation . The compliment usually takes the form of a charter for the corporation which specifies the powers and limitations of the proposed corporationAdvantages of a CorporationThe foremost advantage of forming a corporation is that the corporation has a separate legal human race as distinct from its promoters . The otherwise principal advantages argonThe liability of the shareowner is limited to the extent of a fixed amount of investment funds in the stocks of the company and does not extend to the in the flesh(predicate) assets .
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This implies that the stockholders are not liable to decide the debts of the company through their personal means in reference the corporation is unable to deign its debtsThe ownership of the corporation is tardily transferable to othersThe corporation has a char executioneristic of stability and permanency of existence in which the closing or incapacity of a principal officer or owner does not deter the corporation from carrying on its business without interruptionThere is the flexibility of mobilizing the required seat of government in bighearted sums from umpteen investors who can invest in the stock of the corporationIn a corporate form of business it is well-to-do to secure grand term financing by securing the corporate assets and the personal see to it of the stockholdersDelegation of authority and centralized control are the distinct advantages of a corporation where the authority is delegated by the owners to leased managersDisadvantagesThough some of the states allow for broad charters , usually the activities of a corporation is limited by the charter and various state laws relevant to it . The other disadvantages areThere is ceaselessly the danger of exploitation of the engagements of minority stockholderThe corporation form of business organization is governed by too many regulations and there are a lot of reporting requirements from local state and national legislationsDelegated authority sometimes may act to the detriment of the interest of the corporation unless the managers...If you want to get a full essay, severalise it on our website: BestEssayCheap.com

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