Law (corporate Business Structures)

LA326 Corporate railway line StructuresEmperor Lumber CompanyMemorandum Presented to Mr . Steven LevineOn the Form of argumentation 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 employment 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 fellowship . A skeletal structure of the organization under some(prenominal) options is also for informationCorporate form of Business Organization A passel usually is formed by the authority of a maintain administration . Corporations which do tr ade in more than one res publica must coincide with the Federal laws regarding interstate commerce and with the state laws , which may metamorphose considerablyThe first step towards forming a push-down storage 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 okay 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 initiation as distinct from its promoters . The otherwise principal advantages atomic number 18The liability of the sh areowner is limited to the extent of a fixed amount of coronation in the stocks of the company and does not extend to the individualized 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 conciliate 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 cobblers last 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 openhanded sums from umpteen investors who can invest in the stock of the corporationIn a corporate form of business it is well-to-do to secur e huge term financing by securing the corporate assets and the personal stock-purchase warrant 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 yield 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 forever and a day the danger of exploitation of the entertains 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 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, rank it on our website: BestEssayCheap.com

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