Corporations VS Private Individuals

A business is defined by the US Department of the Treasury as an unincorporated company or unincorporated joint venture. Companies may be either for-profit or non-profitable entities that conduct primarily to meet a particular social cause or further an educational or political purpose. In the United States, state laws and rulings provide specific guidelines for the maintenance of a valid business name, the use of corporate seals and titles, management of the company’s assets and liabilities, and conduct of business. Business names may be limited to a particular word or a combination of words and names.

BUSINESS

The creation of value added components is an important principle of creating value in a business. Good business decisions create value for stakeholders by generating new markets, improving efficiencies, reducing costs, increasing sales, or employing creative methods to enhance customer service. Creating value adds in many ways such as building relationships with customers and other key stakeholders, improving productivity and marketing skills, and attracting new suppliers. Stakeholders must also be valued for their ability to provide profit, reputation, and credit risk. These key takeaways key points economic value added concepts reflect the essence of creating business value.

Creating jobs in today’s world is one of the key reasons why corporations exist and compete against one another. Many corporations are considered main article companies because they often utilize the main article product which in this case is labor. Labor is a valuable commodity in any economy because it is the resource that is not only used to live but is also used to create goods and services. The ability of one corporation to extract maximum profits has often been the driving force behind various types of mergers and acquisitions. One main objective of business is to create employment, which in turn creates more revenue for the corporation in terms of personal and business taxes.

Business is a unique entity separate from its owner. The corporation may own shares of stock or invest in property. It is an entirely separate entity and has the same rights and responsibilities under the law as other entities. The main driving force behind a corporation is profit which is derived through the efficient use of capital assets. Corporate profits are ultimately determined by shareholders whether through dividends or by operation of the corporation’s business model.

Under common law jurisdictions a corporation had limited liability. This means the shareholders of a corporation were solely liable for the actions of the entity. Unlike partnerships that enjoy a much wider range of liability and corporate partners that are considered as responsible for their actions, corporations are limited in what they can and cannot do on their own. Shareholders are usually held liable for the actions of the corporation and therefore will be financially penalized if the business fails. Corporate liabilities cannot exceed the share capital of the entity, or alternatively if the corporation is able to raise funds by issuing equity.

The main objective of a corporation is to avoid being considered a sole proprietor or a partnership when it comes to incorporating in a country other than one’s own. Having a separate legal entity in place provides businesses with greater protection by putting them on the same footing as other businesses when it comes to their taxes and liabilities. In effect a corporation becomes a partnership with the same status as any other partnerships when it comes to the tax status of the corporation and shareholders. Although some countries may allow a corporation to act like a partnership without being classified as one, this does not mean that a corporation can conduct business in these nations. A few nations recognize a corporation as a separate legal entity and recognize its liability as such, thereby eliminating the need to treat a corporation as a partnership at the nation state level.