Thursday, September 26, 2019

Corporations Essay Example | Topics and Well Written Essays - 1000 words

Corporations - Essay Example This is particularly the reason behind the constant application of law within the systems accepted by the organization as per guided by the local governments seeing through the operations of the said business groups. In this side of the situation, the fact that corporation has the advantage of enjoying the limited liability guideline is one of the most important laws that had been created to at least assist in the process of incorporating legalities in the business operations of the organization within and even outside the territories of the said business group. However, to be able to understand the matter well, it is first important to know what limited liability actually stands for and how much it naturally affects the ventures of the business as an entity in the field of international commerce systems. Most people are not willing to risk everything to go into business. Yet for a business to grow and prosper as well as create abundance for the owners of the said entities, many people would have the need to be willing to invest money in it. The way to solve this particular issue among hopeful entrepreneurs was to create an artificial being, one particular entity that existed only in the eyes of the law- a business group, a corporation that is noted as an individual that has its personal rights and personal advantages and disadvantages of existence. In this phase of the writing, the advantages of corporal creations are to be discussed. Advantage to have more money for investment Limited liability Advantages to business size Advantages to having perpetual life Advantages to engage in the ease of ownership changes Advantages in easing the drawing of talented employees Advantages in creating separations of the corporation ownership from the management As observed, one of the most important advantages that the corporation has from the other forms of businesses is that of the limited liability advantage of the organization. Likely, this advantage involves the responsibility held up towards the owners that are only in balance with the amount of finances that they have invested in the business. It is considered that this particular advantage is natural gift to the formation of corporation. The safety of the monetary investment of the owners is well protected through the provision of the limited liability advantages of the creation of corporations. Having businesses like this is a huge advantage for many entrepreneurs at present especially during the existing economic turmoil. Corporation owners are the ones having the best possible advantages in this scenario. Since corporations are able to extend their business sizes, their profits could naturally increase without necessarily increasing the amount of investment that they have primari ly contributed to the establishment of the organization. Hence, as a result, if in any case the business fails, the amount of financing contribution that is lost by the owner could only amount to the investment that he or she has further used as a capital for the establishment

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