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Corporate Characteristics Proposal Essay

2120 words - 8 pages

IntroductionAs the CEO, you are aware the Team A, consisting of Robert Azevedo, Ross Amaral, and Susan Ro have been hired as consultants for a start-up business venture. The primary tasks set for Team A include a complete analysis of corporate characteristics. As part of the analysis and proposal, Team A will address the following matters. First, Team A will describe several different types of business that may serve as the new business venture. Second, there will be a comprehensive illustration of corporate characteristics. Third, the consultants will discuss and recommend the different types of stocks and corresponding characteristics, which a corporation could issue. Lastly, Team A will contrast the advantages and disadvantages to the corporate form of doing business. Once all of the information in this corporate characteristics proposed is assessed, Team A believes that the CEO will have all that is needed to make a qualified and informed decision as to the new start-up business venture.Several different forms of business organizations that could be selected as the basis for the business: limited partnership (LP), limited liability partnership (LLP), corporation (Inc., Co., Corp.), and limited liability company (LLC, Ltd.).The limited partnership is a type of partnership. Unlike the general partnership, in the limited partnership, there are one or more limited partners, addition to the general partner(s). The general partners have the same legal position as the partners in a conventional company and have authority as agents of the firm. The limited partners have limited liability and have no management authority.The limited liability partnership (LLP) has elements from partnerships and corporations. In a limited liability partnership, all the partners have some type of limited liability. It is similar to the shareholders of a corporation. The partners of the partnership have the right to manage the business directly and a different level of tax liability than in a corporation. This form of business is best for businesses that all investors want to be active in the management of the company.Another type of business organization is a corporation. A corporation is an artificial legal. The corporation receives legal rights and duties as a legal entity. There are 5 rights that corporations have: the ability to sue and be sued, the right to a common treasury, the right to hire agents, the right to a common seal, and the right to make by-laws.A limited liability company (LLC) is a legal form of business that is similar to a corporation but has a more flexible form of ownership. This type of business organization is more suitable for smaller companies that have a limited number of owners. In a limited liability company, one member is usually treated as a disregarded entity so that the member is singled-out as a person performing the actions of the LLC.A number of characteristics distinguish a corporation from proprietorships and partnerships. The...

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