Corporate Business firm

A lot of people involved in different types of activities to fulfill human requirements and need. In the case of their involvement, they try to make a profit by performing their activities. People are interested to make a profit and maximize their wealth. But some of them can be able to reach their destination, some of them continue their activities moderately and some of them are lost and close their activities. Today we try to discuss the term of business, its form, advantages, and disadvantages of the different forms of businesses separately from my point of view. Generally, a large number of manufacturing and heavy investment companies are constructed in the form of corporate which is called Company also. 

Corporate Firm:

An organization constructs with a bunch of people, authorized by the company act and state laws and starts to operate with a specific number of shareholders which is determined by the Company act and state laws.

We can say as a corporation firm which firm meets certain legal requirements to be recognized as having a legal existence, as an entity separate and distinct from its owners. It is owned by its stockholders (shareholders).

Keywords: The legal entity, company Law, state laws, shareholders, etc.

Advantages:

a.  Limited liability of the Company which is limited its number of shareholders

b. Easy availability of firm capital which is authorized by a joint-stock registered company. Corporations have perpetual existence; which exists beyond the death of the manager, Board of Directors and executives, etc.

c.  Easy transfer of ownership; ownership of share certificate easily transferable.

d. Building credibility; various stakeholders are ready to provide a debt obligation for strong legal support.

 

Demerits:

a. The complex process to start a business initially due to different legal bindings and authorities.

b.  Hight tax rate; in the case of corporate it has to more tax than other business firms.

c. Conflict of interest is high between different stockholders inside and outside the company.

d. Lacks of business confidentiality since it has to disclose its financial, quantitative, and qualitative information to the public. 

Continue

Enable GingerCannot connect to Ginger Check your internet connection
or reload the browserDisable in this text fieldEditEdit in GingerEdit in Ginger×Enable GingerCannot connect to Ginger Check your internet connection
or reload the browserDisable in this text fieldEditEdit in GingerEdit in Ginger×