The concept of organized business is not as new of a concept as you might think it to be. People have associated themselves with like-minded individuals to achieve common goals for centuries. In fact, organized business can be traced as far back as the 4th and 5th century in the Roman Empire. In spite of being a monarchy, many businesses would be given special license by Caesar to operate as a single entity to carry out tasks essential to the function of Roman society. This type of grouping may not have been classified as a business by today’s standards, but it was structured in a loose concept of what we have today. Guilds of artisans and builders operated in such a manner to perform duties for the government and further societal goals. …show more content…
Storms and dangerous territories caused the loss of many ships in this time period and owners could not be held liable for such natural disasters.
In an excerpt from Encyclopedia Britannica, author S. Nicholas Woodward states that the “the corporate form itself developed in the early Middle Ages with the growth and codification of civil and canon law.” (Woodward, 2015) The specific terms and conditions varied throughout the following centuries, while encompassing input and influence from British law. Much of the modern influence came due to the emerging commerce from the industrial revolution in both England and the United States. The railroad and steel industries take much of the credit for various new businesses that sprang up due to the increased convenience of the transportation of goods. The intended purpose of the corporate blanket was to allow a group of people with common goals, skills, and interests to work together as a single personality or entity. If the company as an entity errs in the manner of liability, the individual pieces are protected under the blanket of a corporate structure. With the increase in commerce and trade between growing nations, the desire for business owners to be protected grew, respectively. According to an article on the website www.llc-reporter.com, “In 1977, Wyoming became the first American state to enact a true LLC act
The structure and design of organizations have drastically changed over the last twenty-five years. Organizations develop new goals at the beginning of the year or after the completion of previous goals, and heavily depend on planning to help achieve these goals. Planning is an integral part of organizational success, as upper management receives substantial information on various needs such as risk uncertainty, available resources, employee development, and unforeseen changes in technology (Daft, 2013). Most importantly, successful planning allows management to make effective decisions when unforeseen events arise within the organization. Not participating in planning is equivalent to taking a road trip across the country without a
Also be obliged to pay taxes and dealt with civil and little acts of criminal penalties perform through agents. “The corporation is governed primarily by the statutory guidelines of the state statute that provides for its creation. The requirements for the creation and management of a corporation vary somewhat between the states, but as is usually the case, there are common threads that can be found in the corporate statutes of all states.” (Rogers,
The Company Corporation, also known as www.incorporate.com, was founded in 1972. The Company Corporation is an affiliate of Corporation Service Company (CSC), which was formed by two 1899 period pioneers, Christopher Ward and Josiah Marvel. The Company Corporation's entire focus is on assisting small business owners to form their companies.
The corporation is a complex set of contracts, and corporate law enables the participants to select the optimal arrangement for the many different sets of risks and opportunities that are available in a large economy. No one set of terms will be best for all; hence the "enabling" structure of corporate law.
Since the early years, we as human beings seeking ways of generating more and more profits for ourselves, during the exploration people discovered that it would be much more efficient to work together as partners, groups, teams, which would eventually creating an ‘organisation’ when certain requirements have been met. An organisation is defined by the business dictionary:
In the 1800s, state corporation laws assisted in the creation of corporate boards, who could govern, much like state congresses, without unanimous consent of shareholders. This made the running of corporations much more efficient. As time passes, corporate boards seem to be gathering more and more power, particularly with the inception of large mutual funds and similar cash-building entities, which place another layer of organization between stakeholders and corporate governors.
The corporation, which is “an organization, especially a business that has a legally separate existence from the people who run it,” was born with the formation of the British East India Company in 1600. At the end of the American Revolution, the people of the thirteen American colonies shared an intense fear of the corporation, due to the imprint left on the country from the actions of the British East India Company. These actions included the exploitation of the colonies’ wealth and the domination of all trade coming into and leaving the ports of each of the thirteen colonies. For the entirety of the following century, the American government placed stringent requirements and tight regulations on corporations that emerged within the United
● It also has to do with making sure that the strategies they're implementing are being
As discussed earlier in the chapter, one of the primary reasons to organize a business as a corporation or as a limited liability company (LLC) is to protect the personal assets of the principals. As a general rule of corporate law, which has been a part of the U.S. legal system for over two centuries, the principals of a corporation are not personally liable for a corporation’s debts and obligations. In other words, a corporation’s principals are generally immune from personal liability for the decisions they make and the actions they undertake on behalf of a corporation. For example, assume that Corporation A contracts with Corporation B to purchase equipment valued at $500,000. If Corporation A fails to pay Corporation B for the equipment it purchased, the principals of Corporation A are not personally liable to Corporation B. Rather, Corporation A, the party in privity of contract with Corporation B, remains liable for the liability it incurred. A so-called “corporate veil” protects the principals of Corporation A, which insulates them from legal actions taken by Corporation B to
One of the prevalent belief is that corporations were set up solely to maximize profit to shareholders. Unlike other business models, corporations have the sole status of being viewed as a ‘legal person’, with the rights similar to natural citizens including “engage in business and contracts, initiate lawsuits, and itself be sued” (Business Dictionary). This unique classification provides corporations with the rare opportunity to take advantage of the power corporations have to benefit society and the economy. One such example is the potential for companies to incorporate under a B-Corp (Benefit Corp) structure rather than as a C-Corp. The way that a companies structures itself can have significant implications on its corporate governance.
Corporations are the biggest business organization forms in the United States. A Corporation is a “fictitious legal entity that is created according to statutory requirements”. Corporations generate more that 85 percent of the country’s gross business receipt and can range in size from one to hundreds of owners (478, Cheeseman). Shareholders are owners of their corporation and have a say in the business matters. There are three types of corporations. A domestic corporation is a corporation that is in the state in which it is incorporated. When a corporation is in another state or jurisdiction outside of where it was incorporated it is a foreign corporation. An alien corporation is when the corporation was incorporated in another country.
A Corporation or LLC allows the individual to become a separate entity from the Corporation. Many business owners and entrepreneur enter a partnership or corporation to protect their personal assets. This is especially important when you are in the business to expand the business and market the product/service. The corporate veil is defined as “a situation in which courts put aside limited liability and hold a corporation 's shareholders or directors personally liable for the corporation 's actions or debts” (LII, n.d.). There is an invisible shield that the “veil” separates the corporate entity and provides protection for the people (directors, shareholders, etc.) also known as the “alter ego”, and keeps them covered from personal liability behind the
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.
An organization, by its most basic definition, is an assembly of people working together to achieve common objectives through a division of labor. An organization provides a means of using individual strengths within a group to achieve more than can be accomplished by the aggregate efforts of group members working individually. Business organizations are formed to deliver goods or services to consumers in such a manner that they can realize a profit at the conclusion of the transaction. Over the years, business analysts, economists, and academic researchers have pondered several theories that attempt to explain the dynamics of business organizations, including the ways in which they make decisions, distribute power and control, resolve conflict, and promote or resist organizational change (Pfeffer, 1997).
Owning a business, any business, gives an average family the advantage of having a flow of stable income as to families whom income is acquired from part time or full time jobs, especially if it is a corporation. A corporation is an independent legal entity owned by shareholders. This means that the corporation itself, not the shareholders that own it, is held legally liable for the actions and debts the business incurs. Corporations are more complex than other business structures because they tend to have costly administrative fees and complex tax and legal requirements. Due to these issues, corporations are generally suggested for established, larger companies with multiple employees. Corporations offer the ability to sell ownership shares in the business through stock offerings. Although sounding attractive, corporations are not all good to others besides the business itself. Corporations have an abducting amount of authority, overpowering many businesses, releasing excessive pollution, and affecting the planet and nations health tremendously.