100%(1)1 out of 1 people found this document helpful
This preview shows page 1 - 4 out of 8 pages.
LEGAL AND ETHICAL ISSUES IN MANAGEMENT 1Legal and Ethical Issues in Management NameInstitution
LEGAL AND ETHICAL ISSUES IN MANAGEMENT 2Legal and Ethical Issues in ManagementGemma and James have created a prototype robotic device that they have naked Phoebe. It is a dream of every individual that wants to start a business to prosper and earn as many profitsas possible. Therefore, both Gemma and James have to internalize the partnership, corporation, and limited liability company would best fit their business entity. Considering starting up a business, you have to take into account the kind of business form that will best suit your business. These will help you minimize startup costs, avoid complex government regulations and laws requirements. In the United States, more than 10 percent of businesses are formed through partnership though the majority is a small and medium-sized business. It is generally easy and less costly to form compared to a corporate kind of business or limited liability company. In this form of business, the impact of business can be resolved using the partnership agreement that points out the rights and roles that each party is mandated to follow (Skripak, Cortes, and Walz,2016). It is the best way of bringing together different forms of ideas and talents to run the business. However, it might not prove ideal in the case of Gemma and James since this is a business that would require more resources in the future. It might reach a point in which contributing more resources to support the operations and expansion of the business becomes hard. It is, however, prudent to consult the professionals when setting up this kind of business agreement. The corporation is different from the partnership and limited liability company based on the legal entity that will be created to separate both Gemma and James. According to Skripak et al. (2016), corporations in the United States are about 18 percent, which raises 82 percent revenue annually. Unlike a partnership, the corporation creates a board that oversees the operations of the business. They also set goals for the management and hold them accountable to
LEGAL AND ETHICAL ISSUES IN MANAGEMENT 3achieve the set goals. Its advantage over partnership varies from limited liability for shareholders, specialized management, accessibility to more financial resources, and continuity of the business. The chances are that in partnership, in case one person between Gemma and James dies, the business might fail or be dissolved. The corporation is built on the legal life separate from the owners, and therefore it can forever exist even when one owner dies. The transfer of ownership in the corporation is simple as shareholders are only required to sell their shares to others but not to the general public. The power to acquire funds from the banks and other lending bodies for corporations is very high compared to that of partnership. It is vital for