Mini Case a. Corporate finance is important to all managers because it helps them identify and use strategies and projects that add worth to their firm. It also helps forecast funding requirements and formulate strategies for obtaining those funds. b. Organizational forms of business a.
In order for a corporation to become incorporated it must follow the general corporation of the state. An advantage of a corporation is that it is its own legal entity and thus does not hold any legal or monetary liability on its shareholders. In a limited liability partnership, the partners are only liable for the amount of monies invested in the organization, however that is not the case with a corporation. In a corporation the share holders bare “NO” liability at all. The downfall of a corporation is that of double taxation.
CHAPTER 2 QUIZ 1 | Which of the following best describes a company that follows the inherence theory of social responsibility? | a. | Managers are responsible to shareholders, but serve them best by being responsible to larger society. | | | b. | Managers answer only to shareholders and act only with shareholders interests in mind.
LIT1 Task 1 SOLE PROPRIETORSHIP: As the first word in the name suggests there is no distinction between the owner and the business, legally they are viewed as one entity. When it comes to starting a business this option is a perfect one because there is little to no start-up cost and autonomy since it is now your sole responsibility. The main disadvantage to this type of business is that financially the owner may find it hard to start up because any money that I loaned is a personal loan. • LIABILITY – The owner (proprietor) is liable for all debts and profits the business is and vice versa. The business and the owner are one entity so when the business owes on a debt the owner’s personal assets are liable to be taken as payment
(Schlesinger) Stakeholder can be outer or inner to the commerce or the organization. For the victorious execution of the commerce and for the correct or utilized use of invested money, stakeholders rely on the CEO. Therefore, pay of the CEOs is vital for the stakeholders of the John Deere and Caterpillar. b. Literature
MGT 498 Final Exam Latest 1. According to Porter, the corporation is most concerned with • the aggregate level of demand for a product line • the amount of pressure from the societal environment • the intensity of competition within its industry • a market's position on its life cycle 2. Which strategy specifies the firm's overall direction in terms of its general orientation toward growth, the industries or markets in which it competes, and the manner in which it coordinates activities and transfers resources among business units? • Corporate • Divisional • Functional • Organizational 3. Which is the MOST commonly used measure of corporate performance (in terms of profit)?
Companies are in business to produce a profit for their shareholders. To make a profit one must consider all the stakeholders involved that make a business run. Stakeholders are the owners, employers, employees, investors, customers, suppliers, competitors, communities, media and government agencies. Some may think the only responsibility of business is to compete without fraud or deception and in a legal manner using its assets to increase profit. If you consider all the stakeholders, there is a responsibility to do more than make a profit.
QBT Task 4 – Final Version 2 Robb Farrell Western Governors University Student ID# 000242903 THE REAL BOTTOM-LINE OF TODAY’S BUSINESS Research reveals that companies that focus on adhering to ethical standards and investing in socially responsible practices to the benefit of all stakeholders have a significant business advantage it today’s market place. Socially and ethically conscious originations have compelling business results in related to employee loyalty, company profits and consumer affinity. There was a time in our capitalist society that an organization’s number one priority and predominant focus was profits and shareholder interest. Indeed things have and are changing. In today’s market climate, companies have had to increase their consciousness as to what really matters.
Week 1 homework Finance 515 Keller School of Management September 7, 2014 1. What is the most important difference between a corporation and all other organizational forms? A corporation operates as a legal entity distinct from its owners 2. What does the phrase limited liability mean in a corporate context? .Owners of the corporation are called shareholders, and shareholders only risk the investment they made in the business, which is the price of their shares of stock.
Liugai Andrei BA-109 Nike’s sweatshop. Lesson should be learned In modern society, social responsibility of corporate is divided into economic responsibility, Legal liability, responsibility of charity and Ethical responsibility. Ethical responsibilities legally do not have to be forced by social norms formed companies comply voluntarily. So then companies need to pursue what ethical management is. Phenomenon called multinational corporations, business activities were confined within one country in the past have appeared riding the wave of globalization.