Corporations

organizational structure of a C corporation. A C corporation is the standard corporation, while S corporation, its counterpart, has a special tax status with the IRS. If a new corporation is formed, it is by default a C corporation. “A corporation or C corporation is an independent legal entity that is owned by the shareholders (reference180.com).” The independent legal entity means that a corporation is given many of the same legal rights as a person. This means that a corporation can sue or…

When corporations were first constructed, they were constructed with the goal of serving the investors rather than the management. Their primary objective was to “conduct business activities with a view toward enhancing corporate profit and shareholder gain.” A system of good faith was meant to govern them in which the only interests that were to be focused on were the interests of the corporation as a whole and on the shareholders. The system of governance that existed in corporations began…

held liable for the contracts they made for corporations that are not yet created. This liability can only be lifted with a novation, which is an agreement between the corporation and the third party to release a promoter. Since no corporation was created, the novation process cannot occur and Hayes will be held liable for the contract. Hayes was forced to pay for the van because promoters can be held liable for the contracts they made for corporations that are not yet created. This liability…

that the light cannot mix with the darkness. God tells us that we should use caution, and not get mixed up in business affairs with nonbelievers, which tells Wanda not to form a corporation or an LLC with her friend. I agree that when starting a business, it is important to consider the structure of a corporation or Limited Liability Company (LLC).…

Limited Liability Companies (LLCs) Advantages of LLCs A limited liability company (LLC) is seen as “combining the most advantageous features of partnerships and corporations” (Kubasek, Browne, Herron, Dhooge, Barkacs, 2015b, p. 266). Perhaps the most significant aspect is the variety of choices the LLC has upon its inception which are included in the operating agreement. “[T]he enormous flexibility and contractual nature of the LLC may provide advantages such as clearly negotiated and defined…

Very well stated when speaking of corporation, corruption, and public interest. As you mentioned, corporations such as Walmart and General Motors generate billions of dollars in revenue, making them among the most powerful entities in the country. Corporations in this country employ millions of Americans, providing income and benefits to families nationwide. However, there has been much controversy in the practices taken by corporations, including unfair wages, exclusion from medical benefits,…

the additional capital investment you’re seeking. Your liability as the owner of the company would also change once you become an S-Corporation. As you operate right now, you, the owner, are entirely and personally responsible for any and all liabilities. Once you file the Articles of Incorporation in your state, along with IRS Form 2553, and become an S-Corporation, you will no longer be personally liable. If a cabinet falls from the wall, causing an injury or a truck causes an accident,…

seen many similarities with the society depicted in Jennifer Government by Max Barry. Jennifer Government is staged in a society where the wealthiest corporations have taken over the planet and have formed their own society. As well as that, they have made a huge impact in the human nature and the lifestyle of people. Also, the movie The Corporation by Mark Achbar explores the goals and motives of companies presented in modern day society and how they are fooling the public. The movie as well…

2002, referred to as the SOX Act, was passed with the intention of curbing fraudulent accounting practices. In response to the many scandals proceeding 2002, such as those surrounding the Enron Corporation and WorldCom, this act of legislation demands full disclosure of the financial practices of a corporation in order to build investor confidence in financial statements and the market as a whole. The three main sections of the SOX Act are sections 302, 404, and 802. Section 302 demands that…

There are many choices that must be made when setting up a business but the most important question is what type of business it will be. In today’s business world there are three types of businesses sole proprietorships, partnerships, and corporations. In this paper each type of business will be explained in detail by describing advantages, disadvantages, and examples of each type of business. The first form of business is the sole proprietorship. A sole proprietorship is a business that is…