A corporation is a distinct legal entity with a name and it also enjoys many legal powers like a natural person (Cillers, 24). Thus, it can be observed that when the company is formed, it automatically acquires the capacity and authority to have its own rights and duties (Gibson, 198). One major distinction between a corporation and a proprietorship is that corporations can acquire and exchange property and they can enter into contracts. In this case, the new company to be formed will be called Global Courier Services Inc. This company will be incorporated from a small business that has been specifically concerned with providing delivery services of small parcels to clients located in different parts of the local city. However, as a result of booming business, it has been underscored to expand the business into a large company called Global Courier Services Inc. This new company will be comprised of different shareholders and it will compete with other large companies that are involved in this particular business. Global Courier Services Inc will specialize in transporting parcels, light goods as well as mail among different clients. The corporation will cover the whole state and it will be headquartered in New York. However, the company will have offices in major towns and cities around the state. The company will operate a fleet of cars and bikes that will be used to deliver various goods to different clients across the whole state. The company will be publicly listed and it will be run by a board of directors that will be selected by the shareholders. It is also intended that the company will be comprised of various shareholders though it will initially hold a 55 % ownership of the organization. The company will offer 24 hour services to the clients and it will also be comprised of a complaints office that will deal with various customer queries and other related issues that may affect them in carrying out business. When this company has been fully incorporated, it is expected to employ more than 3 000 workers across the geographical area it would cover in its operations. Local people with the knowledge of geographical areas in their respective cities and towns would be given preference in terms of employment. The company would also be comprised of a board of directors since it would be publicly owned and listed on the stock exchange in New York. All the major decisions in the company will be approved by the board of directors as well as the number of shares that can be made available to the willing shareholders. The board will also be responsible for hiring and firing executives when consultations have been made among different stakeholders involved in this particular business. The other important aspect about the operations of the company is that all appointments would be based on merit. Only suitably qualified people would lend executive positions. Since the initial aim of the new company is to incorporate it as a public company, the finding for the start-up organization will mainly come from different sources. Part of the capital will be carried over from the small company that used to over transport services which is now being incorporated into a large company. The other source of start-up capital will come from private investors who may be interested in this particular business. Stockbrokers will be approached in order to convince them to provide funding for this promising
Title: From a sole proprietorship to a corporation Starting a corporation is more complicated than starting a proprietorship or partnership (Ross, Westerfield & Jaffe, 14). As such, the paper outlines the major factors that are considered when one is starting a company or a corporation as it may also be called…
However, before selecting any structure for this business, the relative advantages and disadvantages of each are needed to be considered. An entity where the person opening the business constitutes without any contract with others or incorporation of the entity
It must be noted, however, that limited liability companies may not necessarily work for profiteering (Jitman, 2009). This is a hybrid form of business that has characteristics of both sole proprietorship and partnership. Some of the reasons why the business has become so popular are: - 1) Limited Liability: - The clause of limited liability ensures that the owners/shareholders are responsible for no more than the amount they invested in the business.
In the United States there are 29.41 million business establishments (Census). Starting your own business is a great way to become financially independent and self-employed. A sole proprietorship has many advantages such as control over the decision making, flexible working hours, and the pride of knowing you are helping the U.S economy by creating jobs and taxable revenue streams.
This paper presents a discussion on sole proprietorship, partnership, and limited liability corporations, along with their similarities, differences, merits, and demerits. Sole Proprietorship Sole proprietorship is a very common form of business today, accounting for almost 75% of all businesses, and as the name suggests, the ownership of this type of business is vested upon an individual.
The forms of business organizations have developed and evolved hand in hand with the internal and external factors affecting them (Thomson and Strickland 2002). Sole proprietorship, partnership, and the corporation are the primary forms of business organizations in today's business arena.
The forms of business organizations have developed and evolved hand in hand with the internal and external factors affecting them (Thomson and Strickland 2002). Sole proprietorship, partnership, and the corporation are the primary forms of business
LLC is an ideal choice for those business owners who would like to take advantage of tax benefits offered thereof, while also able to install an organizational structure resembling a private or public corporation.
One of the key advantages of limited liability
I observed serious incline in the attitude of the author towards this specific type of business ownership as he suggested that sole proprietorship is best for most new businesses.
As we proceed further in the article, we see that the author briefly described partnership and
The Wholesale Medical Marijuana Distribution farm is a farm that is dedicated towards the production of medical marijuana on a large scale. The farm partners with the major health institutions in the production of marijuana for the therapeutic
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