Question

Define the advantages that the law affords affords to business corporations. In view of the many advantages that the law affords affords to business corporations, what additional responsibilities or obligations if any should a business corporation have to the public. If you were advising a client on picking a business form explain why a corporation would be a good choice. Also explain why a corporation would be a bad choice.

What does it mean to be a responsible corporation?

Answer 1

Advantages the law affords to business corporations and Responsibilities or Obligations of Business Corporation to the Public

Corporate law was adopted in most states in the 19th century, enabling corporations to take advantage of a legal system that separated liabilities from possession and management. The division of ownership and responsibility ensures that, unlike single shareholders and association members, shareholders of large company companies have the privilege of limited liability for the assets of the corporation and other contractual responsibilities. The principle of limited liability ensures that company owners (shareholders or shareholders) as well as directors and executives are covered by legislation providing that, under certain cases, their liabilities in the case of a business collapse can not exceed the value that they have paid for their ownership rights. The same defense extends to owners of many certain entities such as limited liability corporations (LLCs). An LLC is similar to a company in that members have limited liability; but, more of a partnership, it is structured and controlled. Within each jurisdiction, many forms of companies are available for the purposes of giving members the privilege of limited liability, including a company, an LLC, a joint liability partnership and a joint trust. A business owes a obligation to the business, or the owners only. To supply the public or consumers with safe and reliable goods and services, and to ensure adequate environmental protection from environmental hazards.

Advantages of Business Corporation

• Perpetual life-passed over many generations
• Shares sold to the market as a means of capital
• And limited liability covers owners from any obligations

Disadvantages of Business Corporation

• Independent supervision that can long-term be catastrophic
• Double taxation, all taxes levied on income in which owners are paid on their dividends in similar proportion
• Excessive tax filling containing a lot of red tape.

A Responsible Corporation is a corporation that works beyond the necessary requirements of its principles of governance and the national rules.

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