Analyze Political, Social, Ethical, and Legal Differences Facing Both Organizations and Determine the

1344 Words6 Pages
My Business Type Decision for a Successful Company
Ernst Dorval
American Intercontinental University

This paper will evaluate the advantages or disadvantages of each business type with the business issues facing. It will discuss the management decision to make concerning which legal form of business that will facilitate my firm to succeed.
Key words: Management decision, advantages, disadvantages, legal form of business.

My business Type Decision for a Successful Company My invention of a new home appliance was a great idea. In fact, it is easier and safer to use than the old appliance products on the market. It will satisfy consumers. And, it will be appropriate in a wide variety of other products. So, my plan
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If a partner is dead the business can easily dissolve, according to Wiley (2005). He clarifies also that this type provides “limited liability to raise large sums of money.” It would be better to have a legal structure that would avoid these inconveniences when opening a large business. Can the next legal type of business solve these issues? The Corporation type proposes advantages and disadvantages to evaluate.
The corporate form contains its advantages. The Dictionary of Finance and Investment Terms (2006) describes the corporation as a “legal entity, chartered by a U.S. state or by the federal government, and separate and distinct from the persons who own it... it is regarded by the courts as an artificial person; it may own property, incur debts, sue, or be sued…” The same dictionary summarizes also some advantages of the corporate form. It offers a limited liability. The owners can only lose their own assets. It can also transfer ownership through the sales of the shares of stock. If an owner dies, the company will not need to dissolve. This form provides the opportunity to gain capital through expanded ownership, and to facilitate investors to earn more income from the growth of the firm. This legal form gives some advantages, but also some disadvantages.
Ebert & Griffin (2005) outline three disadvantages to operate a corporation form of business. First, the corporation requires a high cost, or a lot of fund, to put

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