...Selecting a Legal Structure Selecting an appropriate legal structure of business is essential to establish a new business for entrepreneurs. Decision making on the type of business will affect tax, legal, and accounting issues during business operations. According to Kimmel, Weygandt, and Kieso (2009) business structures include sole proprietorships, partnerships, and corporations. The purpose of this paper is to review the advantages, disadvantages, tax implications, legal implications, and accounting implications of each type of business to decide an optimal structure for a new small business proposal, named “The Green Korean Cuisine”. Sole Proprietorship “A sole proprietorship is an unincorporated business owned by one individual (Anderson, Pope, Kramer, Flowler, Joseph, Hulse, Luna, & Schadewald, 2012, p.2-2).” Sole proprietorship is easy to establish new businesses with relatively modest amount of money and the control and management are centralized to a sole owner. As a sole proprietorship, the Government grants certain tax advantages such as no tax consequences when contributing or withdrawing money and/or property to the business (Anderson et al., 2012). Anderson et al. (2012) indicated that a sole proprietorship is not a separate entity for a tax and legal implications. Owner’s income or loss and assets report on his individual tax returns. Thus preparing tax return forms for own business taxes are simpler and easier. However, the sole proprietorship allows unlimited...
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...Critically assess the various legal structures available to Northern Ireland business enterprises in the 21st Century. There are various options to anyone wishing to establish a business in the Northern Ireland economy in the 21st century. This paper will discuss and assess the three legal structures; sole traders, partnerships and incorporated bodies. Thus, establishing the features, operations, advantages and disadvantages of each. A sole trader is the simplest type of business structure. Tracey defines a sole trader as “a term used to describe an individual who carries on a business or profession without partners”. An alternative term is ‘sole practitioner’. The individual is free to engage in any kind of lawful business activity. Although small, a sole trader is not necessarily any less successful than a larger business. According to the Office of National Statistics, as of 2013, sole proprietors represented 62.6%, of all UK private businesses. Martin McNaughton, from Newry, founded Glen Dimplex in 1973, manufacturing heating pumps. He now ranks at number 736 on the Forbes Rich List, employing 10,000 staff, making a billion sales each year.The main advantage of being a sole trader is having total control over the business. There are no shareholders nor business partners one can be held accountable to. The business person can therefore make any decisions they see fit. In addition to this a sole trader receives, and keeps, 100% of the profits earned by the business...
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...A Level Business Homework: Legal Structure Notes:- Key Terms: * SOLE TRADERS: A business owned by one person. The owner may operate on his or her own or may employ other people. * PARTNERSHIPS: A partnership is a form of business in which two or more people operate for the common goal or making a profit. * PRIVATE LMITED COMPANY: A small-to-medium sized business that is usually run by the family or the small group of individuals who own it. * PUBLIC LIMITED COMPANY: A business with limited liability, share capital of over £50,000, at least two shareholders, two directors, a qualified company secretary and usually, a wide spread of shareholders. It has ‘plc’ after the company name. Institutional Investors: Institutional investors are pension funds, insurance companies, banks and other financial organisations that invest huge sums of money in the shares of the public limited companies quoted on the stock exchange. They invest on behalf of others, for example, investing the funds employees pay into their pensions. Institutional investors are by far the largest group of investors into a company shares and therefore have huge influence on companies. Critics suggest that it is pressure from these investors seeking to maximise their funds and profits that forces businesses to focus on short-term profits (short-termism) rather than on longer term performance. Stock Exchange Listings: When a public limited company wishes to raise finance, it does this by issuing...
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...The Structure of the American Legal System I. The purpose of this paper is to describe the organization and structure of the American legal system by defining the roles of the federal and state governments as follows; The role of the federal government, the role of the state government, the shared roles of the federal and state government, the Supremacy Clause, and what happens when there is a direct conflict between federal and state laws. II. Role of the Federal Government Over two hundred years ago, our founders designed the United States to be governed under a system of federalism. The Cornell University Law School defines federalism is a system of government in which the same territory is controlled by two levels of government (2014). Specifically, in the U.S. the two levels of government are the federal or national level, and the individual state level. The creation of this system was deliberate as to eliminate the opportunity for any one person, and or branch of government, from having too much power over the country; consequently undermining the system of democracy as a whole. a. The national level of authority is known as the federal government, and has powers over the nation as a whole. The federal government is given express powers, of specific design, from the constitution itself. However, the branches of the federal government are also afforded the opportunity to interpret those powers in each circumstance that may arise, these are implied...
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...The Legal Structure that I have decided to choose for my restaurant “ The Savory Escape is a Limited Liability Company. A Limited Liability Company (also known as LLC) is a business organization that that combines elements of corporations and partnerships. It is designed to provide the advantages of limited liability, favorable taxation, flexible ownership structure and reduced legal formalities.A LLC provides the limited liability protection of a corporation, while avoiding the double taxation. I chose this legal structure for my business because it protects my personal assets. If something bad happens at my restaurant and a lawsuit happens or if debt occurs my personal assets(such as house or car) can not be touched and only my business...
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...Alternative legal structures for value-driven nonprofits Legal structures define how businesses will be held accountable in the court of law. Nonprofits are entirely different structure than pure for profit organizations. As time goes on, more and more private corporations are becoming socially aware and wanting to combine profit with some product or service that simultaneously benefits society. Nonprofit organizations exist as executors of a socially beneficial service or product. This paper will discuss the benefits and disadvantages that both of these structures face. Additionally, this paper will examine benefits of the nonprofit sector’s consideration of newer legal structures as a future platform for business. There are many reasons nonprofits may want to adjust business as usual but, here are just a few: Experts are predicting that with the current economic environment eating away at nonprofit’s primary sources of funding (charitable donations and foundation funding), that as many as 100,000 of the nations roughly one million nonprofit organizations will close their doors in 2009.(REF)” This is the reality for most organizations across the board. The credit market and the capital market turned upside down during the economic crisis in 2008. Foundations are making fewer grants because their endowments portfolios also changed along with the recent recession. Economic turmoil affects for profits and nonprofits differently, but, it makes sense...
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... | | | | |Date issued | Hand in deadline |Submitted on | | | | | | | | |Assignment title(s) |Legal and organisational structures | | |Stakeholders and their influence...
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... John has talked to you, a business consultant, for advice and a consultancy report. This will help his consideration and his discussion with Graham and Andrew. Task: You undertake some research and prepare a business report. Based on their situation, you analyse and evaluate two or three specific types of ownership structure that you think are suitable, outlining their advantages and disadvantages. You then make recommendation of ONE most appropriate ownership structure based on your findings. You also advise him on legal requirements for establishing the new business under the recommended ownership structure. Your business report consists of: * Cover page * Table of contents * Executive summary * Relevant types of ownership structures * Recommendation * Legal requirements for establishing the new business * Bibliography * Appendices (if appropriate) Please note: In the section of “Relevant types of ownership structures”, you 1) exclude those types of ownership structures that are obviously not suitable and give brief reasons; and 2) focus on two or three specific types of ownership structures that you think are relevant to their...
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...leadership, objectives, individual characteristics and action, and employee behavior and attitudes within an organization. It also explains the effects of internal environments, such as culture, the structure of the organization, resource and task allocation, and external environments such as competition or government regulation. These factors contribute to the performance, success or failure, and survival or fall of an organization. Organizational-behavior theories help to explain the collapse of Enron and how leadership, management, and organizational structure contributed to its failure. Organizational Structure With a market capitalization of nearly $74 billion, Enron was one of the world’s leading energy companies by the late 1990s. However, it had gained this status through the perpetration of illegal activities at the very highest levels of the organization. Enron’s fall was because of the organizational-level corruption that grew from its structure and trickled down to the collective behavior of its employees. Enron’s top-down, hierarchical structure by unit grouping meant that the top management team either directly or indirectly through their subordinates influenced the actions of the organization. For example, the structure of the accounting department allowed it to disregard legal requirements through “structural secrecy” that Enron’s executives could exploit (Beenen & Pinto, 2009, p. 283). As part of its strategy to grow its business, Enron’s leadership engaged in aggressive...
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...Total Rewards System Proposal Claudia Taylor-Berry Dr. Steven Davis HRM 533 – Spring 2015 May 18, 2015 Question # 1-Create a brief overview of the company requirements for a total rewards system. Many organizations in today’s business arena want a total rewards system that encompasses the company’s objectives and their interconnection to the total rewards system (“WorldatWork,” 2007). However, mega organizations that employ over 20,000 employees and provide services in several different countries may require a more diverse total rewards system. With that said, the organization must have a purpose, objectives, eligibility requirements, measuring techniques, funding, structure, global considerations, a timeline of detailed actions, and laws when creating their total rewards system. According to the experts, a company must consider the following core provisions as components of their total rewards system: * Cash Compensations: The employee’s base pay and incentives. * Benefits: The employee’s health care and retirement aids. * Work and Life Balance: Assisting the employee by offering tools to assist with balancing work and life. * Performance Management and Recognition: Aligning company goals with total rewards through individual and team efforts, and the acknowledgements of employee actions, behaviors, performance, and efforts in achieving company goals. * Career Advancement and Development: The employee’s career development and promotion (“WorldatWork...
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...Organization design is a process where employees, information and technologies are integrated to achieve objectives of the organization. Organization structure is explaining about the roles of individuals in the organization and who is the authority in this structure. Managerial planning are explaining why an organization exists, what goals the organizations wants to achieve, what is required to achieve this goals and how long the time it takes to achieve this goals. The author will attempt to explain in this paper the “misfit” between organizational design and structure and managerial planning. It’s a difficult process to align and integrate the objectives and goals of all associated with an organization. There are always different opinions...
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...http://wiseamerican.us/product/bus-463-week-8-assignment-2/ Contact us at: SUPPORT@WISEAMERICAN.US BUS 463 WEEK 8 ASSIGNMENT 2 OPERATING A SMALL BUSINESS Use the same business idea you used for Assignment 1 to complete this assignment. Write a seven to eight (7-8) page paper in which you: 1. Choose the legal form of organization for the business, and support your choice. 2. Determine the organization structure which is initially needed to get the business operating, including the number of people necessary to get through the first year of operation, their job titles, and short job descriptions. 3. Propose at least three (3) methods to encourage the employees to work together and build an effective brand. 4. Examine at least three (3) ways to satisfy each of the stakeholders in the business including the investors, the employees, the customers, and the community. BUS 463 WEEK 8 ASSIGNMENT 2 OPERATING A SMALL BUSINESS Use the same business idea you used for Assignment 1 to complete this assignment. Write a seven to eight (7-8) page paper in which you: 1. Choose the legal form of organization for the business, and support your choice. 2. Determine the organization structure which is initially needed to get the business operating, including the number of people necessary to get through the first year of operation, their job titles, and short job descriptions. 3. Propose at least three (3) methods to encourage the employees to work together and build an effective brand...
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...ORGANISATIONAL STRUCTURE Introduction: in this assignment I am going to explain two organisational structures which is Tesco and Harlow College, I will describe the functional areas, span control and the layers in the business. Organisation structure: is the structure that determines how the roles, power and responsibilities are assigned, controlled and how information flows between the different levels of management Importance of organisational structures * Organisational structure is important for decision making * Is most used for communication eg. Marketing employees will discuss any issues with their director then the director will forward it to the vice manger or any upper management * It helps in evaluating employee performance. * The structure helps the business to achieve its goals because various department leaders are in charge to help in meeting any project deadlines. * It enables companies to prevent any conflict. TESCO Span of control: is the number of staff members that can be managed efficiently, basically every staff member can have control over a certain amount of people. Span control helps Tesco a lot even the growth of the company. There two types of span control theses are: 1. Narrow span of control 2. Wide span of control Narrow span of control means a single manager or supervisor oversees few members. Narrow span of control is more expensive as compared to wide span of control as there is more number of managers and therefore...
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...class with the selected aging organization. To investigate these concepts and comprehensively analyze the organization, several areas of the organization are studied, which include: the overview of the organization; the organizational structure; its behavior in terms of staffing and administration; the organizational environment; major issues, and the assessment of the organization utilizing the what is learnt in class. After the research, the organization is found to go along with the class concepts. Executive Summary The project carries...
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...possible. Activities, for example such as task allocation, coordination, and supervision directed toward the attainment of organizational aims are the elements of organizational structure. In conjunction with structure is organizational design, the plan. According to Hearst Communications, Inc. (2013), “When a company's leaders develop plans for how their company should function or would perform better, they undertake the business of organizational design. Good design takes inventory of all the tasks, functions and goals of a business, and then develops groupings and orderings of job positions; departments and individuals to best and most efficiently achieve those ends. Usually, designs are expressed through an organizational chart, which helps players throughout an organization understand functions and power relationships” As a business’s environment changes it is vital to identify, reassess, and possibly change one’s organizational structure and design. Knowing how to respond to the environment aids the company as economic, legal, political, and social circumstances change. Virgin America Airlines is expanding into China, and management realizes recommended changes in strategy may affect its current organizational structure and design. This discourse summarizes its existing organizational structure and describes the existing organizational design with specific discussion of how work is divided among people and departments as well as how Virgin America Airlines uses its resources...
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