Question

There are a myriad of businesses that can be formed. The choice is endless and what a particular business chooses is influenced by the type and size of the business, the degree of risk the owner wants to assume, and the various tax and statutory ramifications. Our more formal organizations have more statutory requirements. summarize

You can look into the New York or federal statutes or if you want to explore further, there are tax and security regulations you can also summarize.

Answer 1

A formal orgnaization is the one which is structured by clearly laid out rules, goals, and practices that functions based on a division of labor and a clearly defined hierarchy of power. It is the duty of a formal organization to comply with all statutory requirements. People tend to choose businesses that involves lesser risk, the one which is less complex, so it is easy for them to carry on. The regulations & tax laws associated with a business significantly affects its choice. Regulatory laws are standards that affect how businesses operate in specific situations. While most business laws are regulatory in some way, there are several categories of legislation that apply more to certain industries than others. For example, environmental laws & business code laws set by the governments affects a particular business to a great extent. A formal organization needs to comply with all such requirements in order to work smoothly.

Also, tax laws control how a business must report its financial status to the government. Many of these laws are in accordance with generally accepted accounting principles, but some are notable deviations, such as government-allowed depreciation schedules. For an organization, it is extremely important to comply with all such rules and laws in order to avoid any legal actions against it. It is also impotant for formal organizations to follow reporting laws properly. Reporting laws control how businesses must report their finances to investors and the government. These laws set standards that incorporated businesses must meet and are necessary for transparency purposes.

Also for the safeguarding the interest of employees, labor laws have been made. Labor laws are regulations that pertain directly to how businesses treat their employees. These laws includes minimum wage regulations, worker protection rules, child labor protection acts and occupational safety and health rules. Following all these rules is of utmost importance for an organization.

So, formal organizations need to fulfil all such requirements in order to work efficiently and effectively. Compliance with all such laws and rules ensures smoother running of an organization for a long period of time. Also, an organization earns goodwill if it conducts its business in rightful manner.