Tax and Share Holders

Corporate governance: “The set of laws, policies, incentives, and monitors designed to handle the issues arising from the separation of ownership and control.” (Cornett, Adair, & Nofsinger, 2016, p. 16).

both a and b (Yes.  The corporate structure provides for limited liability and ease of transferring ownership.)

• Liability: The owner has unlimited liability. When the business fails it is up to the owner to pay all the creditors off.

LIABILITY – There is no separation between the individual and the business. As the owner and operator of a sole proprietorship, all of the profit and loss is the personal responsibility of the business owner creating unlimited liability.

Liability – There are several liability within sole proprietorship. As the owner you are a

* Limited Liability - Unlike partnerships and sole proprietorships, corporate shareholders are not liable for any of the corporation's debts.

S-corporations are almost entirely small businesses due to restrictions placed on their formation by the US tax code. The requirements to make the election to become an S-corporation include limiting the company in terms of stock types such as common or preferred and limiting the number of shareholders. Even

2. The shareholders are one of the

Public companies have maintained their existence because they provide three things that make for durable success, limited liability, which encourages the public to invest, professional management, which boosts productivity, and corporate personhood, which means businesses can survive the removal of a

By focusing on the corporation multiple correlating components are effected such as, shareholders, employees, suppliers and the environment in a positive way. Raynor gave an example of a company that focus on the interest of the corporation, like Costco Wholesale. Costco focus on the employees moral and the consumers wants. Therefore, the company is in a place to continue to buy from its suppliers. The shareholders received continuous amounts of profits. When a consumer goes to buy an item the consumer is then introduced to the corporation. If the corporation does not cater to the need of the consumers. Then the corporation profits would decrease. Without consumers corporations would not exist. I believe that the idea of focusing on the corporation and it long term stands would bring greatest amount of profits. Increasing life expectancy of a corporation would be more profits to

Separate legal entity subject to limited liability and defined by share transfer ability, perpetual existence, flexible financing methods, specialized management, majority rule and the other attributes or consequences of incorporation, the corporation has many economically and socially beneficial functions.

With every business, it is imperative to throughouly investigate the various structuring options available to ensure that one’s business is organized in a manner that provides the most benefit. The major structuring options available to business owners are as follows: 1) Sole Proprietorship, 2) Partnership, 3) Limited Liability Partnership, and 4) Corporation. Associated with each business structure are various advantages and disadvantages. Dependent upon the business structure selected, the obligations and expectations of a business will vary, and determine how a business operates in aspects like: formation, management, and taxation. With knowledge of this, it was decided that Catano would be most effective if structured as a Limited Liability Corporation. This determination was arrived at after reviewing multiple elements of an LLC and comparing them to the alternative structures.

_The corporation generally has fewer or less comprehensive reporting requirements for transparency, via annual reports, etc. than do publicly traded companies.

A company "Limited by shares" is that company which has shareholders, and the liability of the shareholders which is to be paid to the creditors of the company is limited .the personal things of shareholder are protected in the case of the company 's insolvency, but invested money as shares in the company will be lost. A company limited by share is type of a company hold under the laws of England, that of certain Commonwealth countries . It is a form of business orgnisation that is in an artificial creation of the law . It is legally recognized as a separate and distinct entity being independent of both its directors and members. Companies in Australia are ordered by ASIC (Australian Securities and Investment Commission). A company limited by shares has a nominal capital divided into shares of certain values and classes . the base of such a company is that liabilities of share holders is limited to any amounts unpaid on their

any contingent liability of the Company which has arisen since the end of the financial