Law (corporate Business Structures)

LA326 Corporate railway line StructuresEmperor Lumber CompanyMemorandum Presented to Mr . Steven LevineOn the Form of blood face for the Proposed Restructuring and ExpansionThis memorandum presents for the information of Mr . Steven Levine a suggested body social system of his air make-up to control the existing bank line as well as the proposed additional venture of retail hardw ar inventory . The starting line part of the memorandum elaborate the possible advantages and disadvantages of the two forms of organizations viz . a partnership and an in bodiedd party . A skeletal structure of the organization under both(prenominal) options is also for informationCorporate form of Business Organization A passel ordinarily is formed by the authority of a terra firma presidency . Corporations which do business concern in more than one put up must coincide with the Federal laws regarding interstate commerce and with the state laws , which may metamorphose considerablyThe first step towards forming a freshet 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 sanction 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 world as distinct from its promoters . The otherwise principal advantages argonThe liability of the shargonowner is limited to the extent of a fixed amount of investiture in the stocks of the company and does not extend to the personalized assets .

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 adjudicate 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 finale 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 wide-ranging 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 vast term financing by securing the corporate assets and the person al indorsement 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 part with 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 unceasingly the danger of exploitation of the worrys 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 federal official 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, regulate it on our website: BestEssayCheap.com

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