Enron Corporation's Audit Failure and Bankruptcy

Enron Corporation Failure
Enron Corporation was one of the largest integrated natural gas and electricity companies in the
world. It marketed natural gas liquids worldwide and operated one of the largest natural gas
transmission systems in the world, totaling more than 36,000 miles. It was also one of the largest
independent developers and producers of electricity in the world, serving both industrial and
emerging markets. Enron was also a major supplier of solar and wind renewable energy worldwide,
managed the largest portfolio of natural gas–related risk management contracts in the world, and
was one of the world's biggest independent oil and gas exploration companies. In North America,
Enron was the largest wholesale marketer of natural gas and electricity. Enron pioneered innovative
trading products, such as gas futures and weather futures, ... Show more content on Helpwriting.net
...
After a surge of growth in the early 1990s, the company ran into difficulties. The magnitude of
Enron's losses was hidden from stockholders. The company folded after a failed merger deal with
Dynegy Inc. in 2001 brought to light massive financial finagling. The company had ranked number
seven on the Fortune 500, and its failure was the biggest bankruptcy in American history.
The reasons for the downfall of Enron Corporation in terms of audit failure are that the outside
audits for Enron Corporation have received much attention. And while the external audits for the
company do not prevent the corporations from making any mistakes and let the company
bankruptcy or problems that Enron Corporation audits may have contributed to both its rapid rise
and fall of its stock price. So this has cause Enron Corporation into bankruptcy and downfall. Next,
the investors that have
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The Invention Of The Corporation
The Idea of the corporation was born and chartered in the 16th century in Europe. The first
endorsers of the long lasting project were. England and Holland. "I see in the near future a crisis
approaching that unnerves me and causes me to tremble for the safety of my country. ...
Corporations have been enthroned and an era of corruption in high places will follow, and the
money power of the country will endeavor to prolong its reign by working upon the prejudices of
the people until all wealth is aggregated in a few hands and the Republic is destroyed." U.S.
President Abraham Lincoln, Nov. 21, 1864 (letter to Col. William F. Elkins) Ref: "The Lincoln
Encyclopedia", Archer H. Shaw (Macmillan, 1950, NY) The World Investment Report of 2009,
published by the UNCTAD (United Nations Conference on Trade and Development), states there is
a total of 889,416 multinational companies (MNCs) around the world: 82,053 parent corporations
and 807,363 affiliates. For whomever wants to find out in details I suggest this link:
http://www.globalissues.org/article/234/the–rise–of–corporations Starting in the late 1970s, the
Reagan days, many U.S. states adopted intrastate branching and the interstate banking deregulation
that lifted the restrictions on bank expansions and facilitated access to finance. Corporations were
given the right to influence government in their own interests, the same as were extended to
individual citizens. Those corporations grew in number just like mushrooms

Australian Corporation Law
Directors are agents of the company that are selected to act in the best interest of the corporation.
The duties of director's under Australia's Corporation Law will be discussed. The history, evolution
and the future of director's duties will be observed and discussed as well as the consequences they
face if the law is infringed.
Companies hire directors to act on their behalf and manage the corporation based on their values and
organisational culture. Directors are individuals who are appointed to act in the corporation's best
interest. They are given the responsibility to manage the company and also the authority to exercise
power in order to run the organisation efficiently and effectively. There are some cases where
shareholders may revoke ... Show more content on Helpwriting.net ...
A rescission is transaction that can be annulled after a director has breached their contract but is only
applicable where the rights of innocent third parties will not be discriminatory. Equitable
compensation is available where a breach of fiduciary duty results in a loss to the business and is
applicable when the parties cannot be reinstated to the position before the breach occurred. The
reimbursement would be in form of a judgement debt which is when a contract is made and
governed in the state and is breached in the same state which makes it possible to enforce a debt
retrieval plan after a breach has transpired. Damages for breach of duty is a substitute of equitable
compensation where the enterprise is recompensed for the damages subsequent from a breach of
duty. Reparation under corporations Law may necessitate the director to pay for the breach if found
guilty at a civil or criminal hearing. The territorial limits that may affect the implementation of these
remedies if the director is not Australian and the breach occurred outside

Corporations Externalizing Machines
Since corporations are not physical things or people, it is very easy for them to avoid any kind of
trouble. Corporations have become great at passing on their externalities to the public. An
externality is an expense of any kind, whether it is something such as environmental damage or
forcing people in an area to pay money for something, that a corporation forces the public to pay for
while they privatize all profits. Corporations being externalizing machines fit in very well with their
psychopathic behavior. They externalize any cost to the public because they can and it helps them
achieve their goal of making as much money as possible. A quote from Robert Monks puts it very
well, he says "The corporation is an externalizing machine ... Show more content on Helpwriting.net
...
In the past presidents have warned about corporations becoming too powerful and they have worked
to restrict this power. Regulations put in place by past presidents have always been something that
corporations have tries to get around. This was taken to the extreme during the presidency of
Franklin Delano Roosevelt. Roosevelt realized that America's economy was weak and he needed to
help build the middle class back up. Roosevelt included policies in his New Deal that restricted the
power of big business. Corporations did not like this and felt they needed to remove Roosevelt from
office. In order to do this they would call upon U.S. Marine Corps General Smedley Butler. General
Butler claimed that he and his men were used to "persuade" Mexico to allow American oil
companies to operate there. He also forced Haiti and Cuba to allow National City Bank to operate
there. He forced the Dominican Republic to allow American sugar companies to use their land. He
forced several other countries to allow other American corporations to take resources from their
land. Corporations sought out his assistance to end Roosevelt's presidency because he wanted to
bring relief to the middle class by creating more public enterprise and putting tougher regulations on
corporations. They wanted General Butler to rally a group of nearly 500,000 military veterans and
use them to intimidate Roosevelt into stepping down so the corporate

The Evolution Of The Corporation
The Evolution of the Corporation
The Evolution of the Corporation
In a capitalist society where the growth and power of corporations are ever evolving it is critical to
determine the effects and consequences this evolution brings upon the business world. The
Stockholder Theory maintains that managers should act merely as agents to the stockholder and only
serve their interests–the maximization of profits (45). Milton Friedman's argument being, they are
the owners of the business, and hence they should be entitled to all profits (45). Although this simple
profit–motive concept may achieve the desired result, and address all of the interests of the
stakeholders it lacks compassion that is so prevalent, and in my opinion superior, ... Show more
content on Helpwriting.net ...
If law is the public's agency for translating morality into explicit social guidelines and practices it
clearly illustrates the lack of morality imposed upon society as a result of the Stockholders Theory.
According to John Stuart Mill most persons, and perhaps all, have a basic moral sensitivity to the
needs of their fellow human beings (17). This was so prominently displayed when Southeast Asia
was devastated by the recent Tsunami disaster that touched the hearts of both the public and
corporate society. Hundreds of millions of dollars were donated by the corporate sector to provide
those misfortunate people with aid. No doubt some of those corporations were displaying true social
responsibility while others were merely acting the part in order to simulate this appearance. This, in
my opinion, is the underlying difference in the two theories I am presently critiquing. Clearly
Freeman's Stakeholder theory is superior in this regard. With such massive profits accumulated by
large corporations those that decide to bear social responsibility can significantly improve society as
a whole.
Immanual Kant proposes that persons should be treated as ends and never purely as means to the
ends of others (22). Kantian ethics nicely distinguishes the difference between Friedman's

Multinational Corporations
Multinational Corporation – business enterprise with manufacturing, sales, or service subsidiaries in
one or more foreign countries, also known as a transnational or international corporation. These
corporations originated early in the 20th century and proliferated after World War II.
Typically, a multinational corporation develops new products in its native country and manufactures
them abroad, often in Third World nations, thus gaining trade advantages and economies of labor
and materials. Almost all the largest multinational firms are American, Japanese, or West European.
Such corporations have had worldwide influence–over other business entities and even over
governments, many of which have imposed controls on them. During the last ... Show more content
on Helpwriting.net ...
Abstractly, Global corporations have a key role to play in issues ranging from human rights to
environmental policies. Specifically, corporations can be most effective in helping the poor by
investing in local and global communities on a long–term basis rather than by acting as charities or
aid agencies. However, to do so, corporations must restore the public 's trust. They must demonstrate
that their presence, particularly in poorer countries and the emerging market economies, is a source
of human progress. They must demonstrate that globalisation is not a zero–sum game in which the
rich get richer and the poor get poorer. In this regard, those who argue against globalisation are
denying 1.5 billion people, who live in absolute poverty, the means of escape. To do nothing is
morally unacceptable. The world is watching the corporate sector. This is a moment of great
challenge, but also of great opportunity because if corporations can demonstrate that they are agents
of progress, they can remove the doubts and renew the trust that is essential for both prosperity and
security.
Multinational corporate structure
Multinational corporations can be divided into three broad groups according to the configuration of
their production facilities:
Horizontally integrated multinational corporations manage production establishments located in
different countries to produce the same or similar products. (example: McDonald 's) Vertically
integrated multinational

The Requirements For Starting A Corporation
The requirements for starting a corporation in the United States. In the united states, starting a
corporation is not too hard, but it has some steps to it. A Corporation is a legal separate and distinct
entity from its owner. "A corporation is created (incorporated) by a group of shareholders who have
ownership of the corporation, represented by their holding of common stock. Shareholders elect a
board of directors (generally receiving one vote per share) who appoint and oversee management of
the corporation. Although a corporation does not necessarily have to be for profit, the vast majority
of corporations are setup with the goal of providing a return for its shareholders. When you purchase
stock you are becoming part owner in a corporation."(Investopedia.com) A corporation the USA
must be formed in compliance with corporate law, which is a state law. Most corporations
incorporate where their principal place of business is located, but not all do, for example, Delaware
chancery(A court with jurisdiction to decide cases based on equity as well as law) has a reputation
for fairly and quickly applying a very well–developed body of corporate law in the state of
Delaware, that 's why lots of companies chose to corporate in the state of Delaware even though
they have no business presence there. To start a corporation, the corporate founders must file the
articles of incorporation with the state agency charged with managing business entities.These
articles might vary from

The Corporation
The Corporation: A Book Review
Joel Bakan's book, The Corporation: the Pathological Pursuit of Profit and Power, is a decisive look
into the mind of the corporation, or big business. It outlines the importance of profit in business and
how ruthless corporations are willing to be in order to bring in substantial revenue. The book uses a
historical timeframe to portray the ruthlessness of business ever since the idea of the corporation
arose in the 17th century. It provides an insight into a world of cheating, lying and stealing in order
to advance in society; which is ultimately the goal Bakan was looking to reach. He provides many
cases, examples and accounts which help the reader to understand the scheming which takes place
and how ... Show more content on Helpwriting.net ...
One specific example he used to aid in proving the irresponsibility of corporations was a lady who
was driving a Chevrolet Malibu when another car slammed into her from behind. Upon impact the
gas tank exploded which caused her children to be burnt. She then took her case to court in an
attempt to sue General Motors for producing a gas tank which was unsafe and of poor design. When
the car was originally test driven a memo had concluded that it would be cheaper to keep the current
tank as it was then to produce a safer design. General Motors had concluded that the number of
paying for the number of fatalities per vehicle on the road would be cheaper than reproducing a new
gas tank to refit its vehicles. It is reasons like this that leads Bakan to conclude that cost–benefit
analysis needs to be reviewed and legislation involved. Corporations need to be prevented from
"acting in ways that are reasonably likely to cause harm, even if definitive proof that such harms
will occur does not exist."(PG 162) This is not the only case Bakan provides to help us see the idea
of cost–benefit and how the desire for profit outweighs the general concern for human life.
As the book progressed we saw Bakan's idea of the corporation as a machine built to destroy the
environment, wages and health; all at no cost to

Multinational Corporation
Imagine you only earn 12–14–cent–an–hour for your hard work, imagine you work with toxic
chemical glues, paints and solvents everyday. Multinational Corporation is a company that make
and sells a product in more than one country. Sometime we called a ¡°transnational corporation ¡±.
Multinational Corporation are harmful because of bad working condition, low wage and long hours,
bad future and life.
Multinational corporations are harmful because they have bad working conditions. According to
Sweatshop Fact sheet, workers who work for J.C Penny are beaten and eat the bad food in America
Samoa. It¡¯s important because workers should not get beaten for work. It harms workers babies
and workers don¡¯t get expectation. Even the police cannot ... Show more content on
Helpwriting.net ...
According to Toys of Mystery, a report on the toy industry in China, the toy factory workers have
never heard of or seen Mc–Donald¡¯s, Disney, Wal–Mart, etc. these famous company. It¡¯s
important because this fact shows that workers knew nothing or little about the world but only
working. They maybe never go shopping and leave factory. Normal people should know those big
companies, but neither the toy factory workers. They are like birds in the cage. For workers, that¡¯s
so miserable. They are human beings but having no rights to enjoy their life. According to David
Bacon, the story of a maquiladora worker, the maquiladora worker neither have time to rest or have
personal life. It¡¯s important because they will get extraordinary tired and lose the chance to
socialize with friends and upgrade themselves, to have entertainment, If workers just keep on
working all the time, their passion for the future, even their life will fade away. No personal life,
workers are exactly like working machines.
According to Bob Peterson of Sweatshop Fact Sheet, hundreds of thousands of children work in
agricultural states instead of going to school in U.S. It¡¯s important for children to stay in the school
and get education so that they can study more, know this world better and find out how important is
study. Because they are just children, they don¡¯t know what is good and what is bad. Working in
agricultural states instead of going to school is a

What are Benefit Corporations?
With the goal of "not just to be the best in the world, but to be the best for the world," Benefit
Corporations or B Corporations, want to be the change in the world by using business to combat
social and environmental problems (B Lab, 2014. "Why B Corps Matter.") . Designed for profit
companies that want to consider their impact on society in addition to making a profit, B
Corporations aim to "redefine success in business" (B Lab, 2014. "Why B Corps Matter."). Whereas
a traditional corporation has a goal to generate as much revenue and profit as possible, Benefit
Corporations also work to create general public benefit and thus make it their responsibility to
satisfy all stakeholders, not just shareholders. Because of their desire to benefit all their
stakeholders, B Corporations work to create higher quality jobs and improve life in communities by
becoming an agent for of change in passing legislation and investing capital to make a difference in
the world. Besides being accountable to all stakeholders, B Corporations are more transparent than
that of traditional corporations as they are required to annually issue a report to the public, assessing
their overall financial and environmental performance against a quoted threshold known as the B
Impact Assessment. In acting socially responsible as a mission rather than an option for businesses,
Benefit Corporations are working to transform revolutionize the way business is conducted.
There are two types of Benefit

The Corporation Documentary Essay
The Corporation
The 2003 Canadian film documentary, The Corporation, is about the modern–day corporation. It
critiques that it is considered to be a person, but since it has so many disregards to the human well–
being and only cares about making as much money as possible, if it were an actual person it would
be considered a psychopath. The documentary starts off with showing the development of the
contemporary business corporation, from beginning as a legal entity to then having the entitlement
of having most of the legal rights of a person. Since a corporation is said to be a "person", the
documentary then was assessing the corporation as a "personality" and showed viewers everything a
corporation was doing wrong in harming a real ... Show more content on Helpwriting.net ...
Even though somehow initially the FDA approved it to be safe, the drug made the cows sick and it
gave them an infection in the utters, called Mastitis. Having Mastitis can put puss in the milk
produced by the sick cow which makes the milk have a lot more bacteria. Then the cows were given
antibiotics to prevent them from getting sick, but then the antibiotics ingested by the cows were then
released through the milk. When people ingest the milk with all of the antibiotics still in it, the
people can become immune to antibiotics for the future. If a person drinks this milk with all of the
antibiotics in it and them somehow get a Staph Infection and need a simple antibiotic to get rid of it,
they could die because they were immune to antibiotics. I always knew that corporations just wanted
your money, but after watching the documentary I was pretty outraged at what many companies will
do just to get it. The complete disregard for human health and well–being is flabbergasting to me.
Kids in sweat shops, people dying from simple staph infections, and many more horrible things that
companies do to make a buck are ridiculous. If companies are given most rights people do, then they
should be given the same punishments that people would if they would do any of the things these
corporations are doing. Some of these companies aren't getting away with it, but many are still and
more needs to be done in order to stop harming the

Corporation X Purchases From Corporation
Corporation X purchases from Corporation Y, the entire stock of YSub, a wholly owned subsidiary
(WOS) of Y, and pays a price representing the present worth of YSub. After the acquisition, YSub
becomes a WOS of X, and X secures a cost basis in YSub stock. On the other hand, as there is no
change in the ownership of YSub's underlying assets, there is no basis step–up (or step–down) in
those assets.
Buyers don't often prefer this result as their purchase price recovery is pushed to the time of sale or
other disposition of target's stock, and there is no intermediate benefit as corporate stock is not
depreciable or amortizable under US tax principles. As such, buyers, in general, prefer to acquire
assets which allow faster purchase price ... Show more content on Helpwriting.net ...
The choice is exercised by making an election by filing a prescribed form with the Internal Revenue
Service ("Service" or "IRS"). If the election is made, the acquired subsidiary secures a step–up (or
step–down) in the basis of the assets. In effect, for the selling shareholder it is still a sale of stock;
while for the purchaser it is in essence an acquisition of assets. Since the deemed sale is regarded
only for federal income tax purposes, and not for other federal and state laws, the ownership of
assets and contracts remains intact, thereby avoiding the complications of an actual assets transfer.
THE ELECTION
If within a period of twelve months, a corporation acquires from an unrelated seller in a taxable
transaction, stock representing at least 80% of the vote and value of another corporation section 338
allows the purchasing corporation (and, in more limited circumstances, jointly with the selling
shareholders) to irrevocably elect ("section 338 election") that such stock acquisition be regarded as
a purchase of the underlying assets for federal income tax purposes. The election is made by filing
Form 8023 with the Service within 8½ months from the end of the month in which the acquisition
was made.
LEGAL CONSTRUCT OF THE

The Powers And Duty Of The Corporation
Control of a company is held to be in the hand of company directors and due to the degree of such
control, fiduciary duties are imposed on them both under statue and common law provisions. The
purpose of these duties are to ensure that directors exercise their power with reasonable care in the
best interest of the corporation. Adherence to and compliance with these obligations is mandatory so
as to hold directors accountable for their actions. The following essay will discuss whether or not the
legislation is suitable and flexible enough or requires amendment with regards to Section 181 of the
Corporations Act 2001(Cth) ('Corporations Act') and the approach to the interpretation of the terms
'good faith' or 'best interest of the corporation'.
The powers and duty of the management of the corporation derives from section 198A of the
Corporation Act 2001 (Cth) with additional common, tort and statutory law. However, the powers of
directors are interpreted to be broad, including making decisions against the majority shareholder's
wishes . The codification of statutory duties is contained in sections 180–184 of the Corporations
Act. The duties listed in these sections are interlocked to protect the corporation as a separate legal
entity as well as its shareholders.
Section 181 specifies that directors must "discharge their duties in good faith in the best interest of
the corporation and for a proper purpose". In both Greenhalgh v Arderne Cinemas Ltd and Ngurli v
McCann it

C Corporation Case
a.) A C corporation has to report ordinary income or loss in the C corporation's tax return.
S corporations passes through its ordinary income or loss to the shareholders. The shareholders
report those on their individual tax returns.
b.) A C corporation has to report dividend income in its tax return and may claim a dividends–
received deduction for the dividend income. Dividend income in S corporation is pass through to its
shareholders and reported as a separate item.
c.) Capital gains and losses recognized by a C corporation are reported in the C corporation's taxable
income. S corporation capital gains and losses are pass through to the shareholders as separately
stated item.
d.) Tax–exempt interest income is not taxable in C corporation, however, C corporation must include
tax–exempt interest income on its earning and profit (E&P) and is taxable when distributed to its
shareholders. Tax exempt interest income is passed through to the S corporation's shareholders as a
separately stated item. And since it is tax–exempt, it is not taxable to the S corporation's
shareholders.
e.) A C corporation has to report its charitable contributions in its tax return; and are limited to 10%
of its adjusted taxable income. In S corporation, charitable contributions passes ... Show more
Distributions in excess of E&P reduce the shareholder's basis for his or her stock or, if remaining
amount is in excess of the shareholder's basis, then the exceeding amount is taxed as capital gains to
the shareholder. An S corporation that distributes a nonliquidating property can only recognize
gains, but not losses. Its distributions are not taxable if they don't have earnings and profits; and if
the distribution is less than the shareholder's adjusted basis in his/her stock. If S corporation has
accumulated E&P, then the distributions made out of E&P are taxable as dividend

The Corporation
Traits associated to a psychopath include irresponsibility, manipulation, grandioseness, lack of
empathy, asocial tendencies, inability to feel remorse, refusal to take responsibility for one's actions
and superficial relations with others. Modern day corporations display every one of the previously
listed characteristics. Is it right that an institution, whose power now rivals that of the State that once
created it to seek the better welfare of its citizens, display the psychological traits of a dangerous
personality disorder? Many say no: there is a rising discomfort with the corporation and its
pervasion into every sphere of human life and it is this uneasiness that has prompted many
academics to further study the corporation and its ... Show more content on Helpwriting.net ...
The problem with the personification of the corporation was the kind of person it would become.
The "best interest of the corporation" concept which is now enshrined in most countries' corporate
law pushes the mantra that executives' only goal is to maximize shareholders' profits. This has given
the corporation a self–interested, uncompassionate personality that promotes its limitless pursuit of
profit and power.
Corporate social responsibility has been one the key business buzz words of the 21st century.
Consumers' discontent with the corporation has forced it to try and rectify its negative image by
associating its name with good deeds. Social responsibility has become one of the corporation's
most pressing issues, each company striving to outdo the next with its philanthropic image. People
feel that the corporation has done great harm to both the environment and to society and that with all
of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and
illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue

The Is A Popular Destination For Corporations
In 2012, Eaton Corporation, a global power company, acquired Ireland based Cooper Industries, an
electrical equipment supplier. Overall, this deal is expected to save Eaton $160 million in taxes by
2016. (Gilleard, 2012). With Corporate Inversions like this on the rise, it is projected that the United
States Treasury could lose up to $19.5 billion dollars over the next 10 years. ( Sloan,
Jeelani,Wahba,Casey & Jones, 2014). After the merger of Eaton and Cooper, Eaton's 2013 effective
tax rate was only .6%. This was down from 2.5% in 2012 and 12.9% in 2011. According to Eaton's
Securities and Exchange Commission's filing, much of this decrease was due to their acquisition of
cooper (Drawbaugh, 2014). While corporate inversions are legal, we must ask ourselves if they are
ethical.
Ireland is a popular destination for corporations looking to invert. For one, while the U.S has a 35%
tax rate, Ireland only taxes corporations at 12.5%. However, corporate functions need to be located
in areas with good non–tax advantages. Tax savings alone do not always justify the costs of
inversion (Marian, 2015). Corporations like Ireland because the country provides numerous non–tax
advantages in addition to such a low corporate rate. For one, Ireland has a skilled workforce, with
universities pushing students towards science and engineering. Being a member of the European
Union, corporations headquartered in Ireland have access to over 500 million customers, as well as
the opportunity to hire

The Success By Becoming A Corporation
Many successful companies further their success by becoming a corporation. Microsoft, a
technology company, is an example of a company that became a corporation and took advantage of
its many benefits of becoming a one. Since the incorporation of Microsoft, many other companies
have become a corporation to benefit from what it has to offer. The development of the popularity of
incorporations as a business has grown over the years. Corporations have grown over the last 200
years. Jane Mallor, one of the editors of the 15th edition of Business Law, wrote that corporate form
was used even before the 16th century in Britain. The British government granted companies powers
to monopolize trade. They were created to encourage investment for the ... Show more content on
Helpwriting.net ...
On top of those benefits, it also gives the companies name credibility because of the added Inc. or
LLC extension it gives to the outsiders. This would attract possible investors, more customers, and
even inform the community giving the company publicity. There are small disadvantages when
incorporating. Incorporating isn't cheap. Before you become a corporation, you have to pay a state
filling fees such as its registration fee, and other taxations. The amount depends on which state you
choose to incorporate with. According to the California Secretary of State Debra Bowen, the articles
of incorporation, legal documents, offer the option to form a domestic stock corporation, a domestic
nonprofit corporation, or domestic common interest development associations. The articles of
incorporation of California show that you need several items to become a corporation. For a
domestic stock corporation it shows you need six items. The first item is proposed corporate name.
Second, a statement of the corporate purpose is required. Thirdly the company must list the name of
an agent for service of process. Fourth the company must list the street address of the corporation.
Fifth the company must list the number of shares the corporation is authorized to issue. The sixth
item needed is for closed corporations only. That item requires the company to list the number of
shareholders that may not exceed 35. For a nonprofit corporation most items stay the

Corporations Law
Issues Based on the case scenario, Doris, Betty, and Charlie formed a company called Bechdo Pty
Ltd. The three members are the directors and Betty who is major shareholder holds 40% followed by
Charlie and Doris who hold 20% each while the 20% is held by the rest. Based on the company
constitution, a managing director has capacity to enter into a contract o behalf of the company up to
a maximum of $100,000. Moreover, he/she can enter into contracts to the value of $900,000 upon
getting consent for the board of directors. In this case, Bechdo Pty Ltd operates without a managing
director since none was elected. The major issue is that Betty being the majority shareholder went
ahead and entered into contract with BB Ltd, Jillo Pty Ltd, and ... Show more content on
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In addition (Chen–Wishart n.d), notes that a company is categorized as a legal personal and operates
as distinct from its shareholders. Based on these statements, Betty had not right to act on behalf of
Bechdo Pty Ltd and Bechdo has the capacity to sue Betty for acting contrary to the company
constitution. Based on the case study, Betty had breach the contract which existed between her and
the company laws. If an act carried is outside the objects for which the company was founded to as
contained in the company's memorandum of association which is this case is the company's
constitution, then the acts are deemed to be ultra vires. In other words, the acts are beyond the
capacity of the organization. In addition, contracts which are deemed ultra vires are categorized as
void (Palmiter 2009, p.59). This can be referenced to Ashbury Railway Carriage and Iron Co v
Richie 1875. The doctrine of ultra vires which have deemed the contracts between Bechdo Pty Ltd
and BB Ltd, Jillo Pty Ltd, and Con Development Ltd as void has been applied with the aim of
protecting the interests of lenders and company shareholders. As noted by Chen–Wishart (n.d), ultra
vires is necessary in protecting the interest of its shareholders who depend on objective clause of the
constitution to limit the acts in which their money may be used. As required by the company act,
directors of a

Corporation and Partnership
Chapter 10 Quizzes Salta Company installs a manufacturing machine in its factory at the beginning
of the year at a cost of $87,000. The machine's useful life is estimated to be 5 years, or 400,000 units
of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units
of product. Determine the machines' second year depreciation under the units of production method:
Answer: $16,900 Cost–Salvage Value/Total units of production (87,000 – 7,000)/400,000 = .2 .2 *
84,500 = 16,900 Amortization: Answer: Is the systematic allocation of the cost of an intangible asset
to expense over its estimated useful life. Big River Rafting pays $310,000 plus $15,000 in closing
costs to buy out a competitor. The real ... Show more content on Helpwriting.net ...
The company's sales for the current period are $185,000. The current period's entry to record
warranty expense is: Answer: Debit warranty expense $7,400; credit estimated warranty liability
$7,400 185,000*4% = 7,400 An employee earned 62,500 during the year working for an employer.
The FICA tax rate for social security is 6.2% and FICA tax rate for Medicare is 1.45%. The current
FUTA tax rate is 0.8% and SUTA is 5.4%. Both unemployment taxes are applied to the first $7,000
of an employee's pay. What is the total unemployment taxes does the employee have to pay?
Answer: $0.00 Employees do not pay unemployment taxes. FUTA taxes are: Answer:
unemployment taxes Arena Company's salaried employee's earned two weeks' vacation per year. It
pays $858,000 in total employee salaries for 52 weeks but its employees work only 50. Record
Arena Company's weekly journal entry to record the vacation expense; Answer: Debit vacation
benefits expense $17,160; Credit vacation benefits payable $17,160 858,000/50 = 17,160 A
company sells computers at a selling price of $1,800 each. Each computer has a 2 year warranty that
covers replacement of defective parts. It is estimated that 2% of all computers sold will be under the
warranty at an average cost of $150 each. During November the company sold 30,000 computers
and 400 computers were serviced

Inspection Rights Of The Corporation
14.01. Inspection Rights.
Any member of the corporation may:
a. Inspect and copy the records of members ' names and addresses and voting rights during usual
business hours on five (5) days ' prior written demand on the corporation, stating the purpose for
which the inspection rights are requested; and
b. Obtain from the Secretary of the corporation, on written demand and on the tender of the
Secretary 's usual charges for such a list, if any, a list of names and addresses of members who are
entitled to vote for the election of Directors, as of the most recent record date for which that list has
been compiled, or as of a date specified by the member after the date of demand. The demand shall
state the purpose for which the list is ... Show more content on Helpwriting.net ...
The minutes shall be kept in written or typed form, and the accounting books and records shall be
kept either in written or typed fom1 or in any other form capable of being converted into written,
typed, or printed form. The minutes and accounting books and records shall be open to inspection on
the written demand of any member, at any reasonable time during usu.al business hours, for a
purpose reasonably related to the member 's interests as a member. The inspection may be made in
person or by an agent or attorney, and shall include the right to copy and make extracts. These rights
of inspection shall extend to the records of each subsidiary corporation of the corporation.
14.04. Inspection by Directors.
Every director shall have the absolute right at any reasonable time to inspect all books, records, and
documents of every kind and the physical properties of the corporation and each of its subsidiary
corporations. This inspection by a director may be made in person or by an agent or attorney, and
the right of inspection includes the right to copy and make extracts of documents.
14.05. Annual Report to Shareholders.
The annual report to shareholders referred to in

Corporation
CHAPTER ONE
Introduction
1.1 Background
One of the primary benefits of creating a corporate entity is to limit the liability of the shareholders.
However, under certain circumstances the corporate entity may be disregarded. This is also known
as piercing the corporate veil and is the most frequent method for holding the shareholders liable for
the acts of a corporation.
Corporate officers, directors and controlling shareholders have a general fiduciary duty of loyalty
and care which should govern all their corporate conduct. Unless they breach that duty by gross
negligence or acts in bad faith, they usually will have no personal liability to third parties. In order
to pierce the corporate veil, third parties have to show personal ... Show more content on
Helpwriting.net ...
The fourth chapter will show the conceptual framework about the topic, its relevant areas and
general concepts. The fifth chapter will show the legal provisions and judicial decisions, application
of the doctrine in Nepalese context. The sixth and final chapter provides conclusion of this paper.
CHAPTER TWO
Literature Review
For the purpose of this study, detailed review of literature had been done. These studies were
conducted in the national as well as international general concepts. For the purpose of this study,
article of renewed authors, various study reports prepared by concerning agencies, books on the
related topic are reviewed for the support of this study. The Act itself has been taken as a tool for the
completion of this study. The judgments of courts in various cases on this subject are also reviewed
in the course of this study. Journals reports research papers, discussion papers and other issues
published by respective institutions have tried to shed light on it. Literature, which have been
reviewed are mentioned as below
2.1 Abolishing Veil Peircing
This article is written by Stephen Bainbridgen published in The Journal of Corporation Law
available at www.legal dictionary.com. According to the writer, Courts traditionally require fraud,
illegality, or misrepresentation before they will pierce the corporate veil. Courts also may ignore the
corporate existence where the controlling

Corporation and Business
CHAPTER 4 1. Is a limited partnership treated as a separate entity for all purposes? If not, give an
example of an instance in which a limited partnership is treated as an aggregate of its partners. No,
they are not always considered separate entities when dealing with substantive liabilities and duties
of the partners, the limited partnership is considered an aggregate of the individual partners. 2. Why
is the fiduciary duty between the general partner and limited partners even greater than the fiduciary
duty between partners in a general partnership? Because the general partner holds majority of the
interest and the limited partners are prohibited for participating in the control of the business. 3.
Suppose that Beth ... Show more content on Helpwriting.net ...
9. Suppose that Katherine, Brianna, and Paige have formed a limited partnership to operate a video
arcade. Katherine is the general partner. She has contributed $2,000 and her time to get the operation
running. Brianna and Paige, the limited partners, have each contributed $3,000. After one year of
operation, the arcade has debts of $10,000, and the three partners decide to discontinue their
business and the limited partnership. Brianna and Paige want their investment returned to them.
Who should Katherine, who is winding up the business, pay first, Brianna and Paige, or the
creditors? How much will Brianna and Paige receive? How about Katherine? Katherine is winding
up the business, she should pay the creditors first and Brianna and Paige will be compensated for
their contribution and partnership interest. Katherine would get the remaining balance if there is any.
10. Suppose a limited partnership has just one general partner, who suddenly dies. Will the
partnership dissolve? Could a limited partnership continue if one of three general partners suddenly
dies? If yes, under what circumstances? Yes, it is not always necessary for limited partnerships to
dissolve if one general partner dies as long as there is one other general partner. If there is provisions
of the partnership agreement permit the business of the limited partnership to be carried on by the
remaining general partner, and that partner does

Closely-Held Corporations Vs Publicly-Traded Corporations
Differences between closely held corporations and publicly traded corporations is in their stock and
ownership. Closely held corporations are privately owned companies that have shareholders that
own personal shares in the company. A trade market does not exist for shares in closely held
corporations. Our text states that "closely held corporations is one whose shares are held by
members of a family or by relatively few persons" (Miller, R.L., 2016, p. 464). Publicly traded
corporations are owned by its stockholders, which is the public and the selling and trading of stocks
are on the international stock market. According to the text, "a publicly held corporation is any
corporation whose shares are publicly traded in securities market such

Jva Corporation
JVA Corporation Simulation
.Performance, as well as revenue, is reviewed every 6 months. This way it allows JVA Corp. to cut
or increases pay every 6 months and review its bottom line. Employees can also benefit by having
the opportunity to earn pay raises potentially twice a year, rather than the typical annual reviews.
I t is my firm believe that to achieve the reduction of the percentage of revenue that is allotted to
employee's compensation from 8% to 5% without it having a big demoralizing effect on its
employees JVA Corp. needs to make strategically costs cuts that allow the corporation to continue
offering its employees rewards and pay raises for their good performance. I feel that this is essential
to our organizations ability ... Show more content on Helpwriting.net ...
Bonuses should continue to be handed out to a lesser percentage of the top employees if it was given
to the top 20% employees it should be reduced to only 10% of the top performers. Bonus amounts
should stay the same until the tough economic times have past.
Amenities that are already offered on the worksite should not be taken away because this will have a
direct impact on employees feeling about the company, but no new ones should be added until it is
determined that the organization is on track to being profitable again. Gym memberships should still
discounts should continue to be offered because not only does it help employees release stress and
stay in shape; it also has the potential to save the company a lot of money on healthcare costs. Phone
bill discounts will only be given to managers and people who perform above average about 80% of
the workforce will receive a lower discount on their personal phone bill or will be taken away for
economic reason. It is important to let employees know why you are taking this steps, letting them
know that it is necessary to take them for the company to stay in business will be of great help when
it comes to them being disgruntled.
To conclude I believe that by taking all the steps mentioned above JVA Corp. Should have no
trouble achieving its reduction of employee's compensation from 8% to 5%. This reduction should
be accomplished

The Gymboree Corporation
The Gymboree Corporation
The Gymboree Corporation has been around since 1976. They have expanded into different market's
and keep their business new and fresh. They have a strong mission and vision statement and
encourage their employees to live the companies values. The company has different business
strategies that all work together. Their financial data is reported in quarters and keeps the company
up to date on how they are doing this year compared to last year. I have included some courses of
actions to help the corporation expand into the global communities.
The Gymboree Corporation The Gymboree Corporation was started by Joan Barnes in 1976. She
noticed a shortage of children's ... Show more content on Helpwriting.net ...
Whether it be in one of their customers, or one of their employees, they want to help someone
realize something that maybe they did not see before. The company wants to inspire their employees
to be able to express themselves. The corporation is passionate about everything that they do, and
they want their employees to be passionate and they want their customers to feel the passion that
they put into everything. The Gymboree Corporation is also authentic. What you see is what you
get, friendly employees, great service, and long–lasting products. The employees at Gymboree are
like a big family. They share their ups and their downs, just like your family at home. Lastly The
Gymboree Corporation is fun. They put fun into everything that they do, between their fun clothing
to their Play and Music classes, to their employees, everything that Gymboree does has an element
of fun incorporated into it. The Gymboree Corporation has six components of their business
strategy. Their business strategy consists of "high quality apparel, brand name recognition,
integrated operations: design, contract production, and retailing, exclusive distribution channel,
merchandise focus, and responsive customer service" ("Gymboree corp–,"). Gymboree wants their
clothing to be the crème de la crème of children's apparel. The Gymboree Corporation wants all of
their brands

C Corporation Vs. Corporation
C–Corporation verses S–Corporation The current fast moving environment has impacted almost
every aspect of doing business. Today, incorporation when starting a business has become a very
sensitive matter that greatly influences the effectiveness and success of any business. In Griffin's
view for instance, among its positive impacts is that it can provide business owners with limited
personal liabilities and credibility in the eyes of customers (Griffin, 2011). Today, the two most
common options entrepreneurs have when it comes to incorporating their businesses are the S
Corporation and the C Corporation. According to Brouwer (2011), the effectiveness of either of
these options depends on the size of the business and the objective of its ... Show more content on
Helpwriting.net ...
Advantages of a C corporation Basing on the above definition, a C Corporation has a number of
advantages which include:–
Limited liability – one of the most renowned pulling factors that influence business owners to
incorporate their businesses is the limited liability that corporate status affords. Apparently, in the
current dynamic and fast moving environment, the greatest fear of a partner or sole proprietor is the
fact that their life's savings can be jeopardized by sudden overwhelming debts or a law suit against
their business (Griffin, 2011). As such, the protection that a C corporation offers to its shareholders
and investors through limited liability or corporate veil comes across as one of its most treasured
advantage. Perhaps this explains why most small scale business owners today are opting to
incorporate their businesses rather than purchase expensive liability insurance.
Raising capital – another advantage of a C corporation is that it can easily raise capital when
compared to a sole proprietorship or a partnership. This is mainly because this kind of corporation
usually has stocks to sell. According to Etuk (2012), most investors are often lured with the prospect
of dividends in instances the corporation makes a profit. Practically, this eliminates the necessity of
C

Benefit Corporation Case
1) Identify and summarize the "new" law discussed in the article.
Lawmakers have passed a legislation that allows for new business models called benefit
corporations. These corporations are obligated to consider the impact on the environment and
society as opposed to the traditional corporations, which tend deem the return on stockholders'
equity as the most important measurement a the company.
(2) Proponents of the law.
The "biggest value" of a benefit corporation is that it authorizes investors to advocate a social and/or
environmental issue while still attaining a financial return. In hindsight, Ben & Jerry's would not
have been sold to Unilever if this option were available at the time of sale; Unilever tried to
maintain the company's good

Are Corporations Moral Agents
Question 4.
It is overwhelming how corporations have embedded a social responsibility in their mission
statements and company objectives. This leaves us with one assertion that is that corporations do
have some level of obligation towards society's morality; however, the corporation itself is not a
moral agent (Klaus M. Leisinger). The discussion that follows is about corporations being moral
agents or otherwise; however I will reach a conclusion that corporations do have an obligation that
extends beyond obeying the law; evens so this obligation have been derived from the corporations
quest for profit making. Corporation's obligation
A corporate company has social responsibilities that affect the public and their business is society's
... Show more content on Helpwriting.net ...
In so doing, corporations does not go empty handed; the reward is profits for its owners and
management. The society benefits more in terms of growth and satisfaction in different respects.
Company goals nowadays incorporate morals or some statements that linger on ethical behavior and
morality, hence companies have a social responsibility as defined by their very own mission
statements and objectives. This further attests to the notion that there is a social contract to deliver
what society deems necessary to achieve developmental growth.
A corporation has the means and ability to lure society towards a product that is more of profit
making for the corporation than a need for the society. It makes simple sense that if corporations
lure society to use a product of its own creation, the product need to be otherwise morally and
ethically right for the group/society in question. If the product does not adhere to the morals of the
society, a law may be created to deter the supply of such a product. E.g., meat products in India need
to be Hallal to cater for the society's religion (Muslims). This builds from the fact that corporations
are a means to an end which is profit making, however in achieving this end, corporations are
required to be within a certain framework as dictated by the rules and laws which apply to that
specific society. These rules are simply a guide to which the actions of a

The Corporation Analysis
Esmeralda Adan
671901554
MGMT 350
The Corporation Extra Credit
Introduction
What is a Corporation? Due to the financial crisis that has been emerging, the nature of the
Corporation has been the subject of considerable debate. While this is a complex subject, two points
of view has been emerging. At one end is the view that the Corporation is an organization of
individuals designed to provide goods and services to consumers, institutions, and companies. It also
generates benefits to society in a variety of ways, including the many services and goods these
corporations efficiently produce and the many jobs that they create. On the other end, there is the
view of the corporation as an organization that will use all lawful means for its ... Show more
They are willing to do anything in order to achieve their goal, profits. Furthermore, many people in
the Corporations have morals, but those morals go out the window if you want to succeed and keep
your job.
Conclusion
The film "The Corporation" illustrates that a corporation is simply an artificial structure, but the
people in it (Stockholder), investors has a moral responsibility. Unfortunately, those Stockholders
don't care about the harm that they are causing. Their Profits are the mindset of the corporations,
therefore is up to us the consumers. Don't get me wrong, now there are many Corporations who are
trying to change their way of working or maybe trying to excuse themselves for the harm they have
or are still causing. For example, many corporations are now adopting sustainability, which can be
defined as "improving the quality of human life while living within the carrying capacity of
supporting eco–systems."This means that they are doing/producing things with less harmful to the
biosphere and environment. Also, on many states governments has made laws that regulate
Corporations actions. For example, there are now laws that prohibit child labor, laws that prohibit
infectious food, laws that prohibit Corporations controlling too much (monopolize), etc.
With these regulations/ actions, it is shown that we are in the right path, but there is still plenty of
action to be done. We as the people should start realizing that Corporations does produce good and

Corporations Law
1.0 Areas of law
Corporate social responsibility (CSR) has long been a touchy issue for governments not just in
Australia, but around the world as well. Companies in Australia are governed by the corporation's
act, which outlines the legal capacity and power of a company. The Corporations Act 2001 (Cth) s
57A1, defines a corporation as a separate legal entity, that includes any corporate body and
unincorporated bodies that may sue, be sued or hold property in the name of an office holder
appointed for that purpose. In context of corporate governance, the main issue is with the current
legislation is in regards to director's duties. Under the Corporations Act 2001 (Cth) s1802, directors
have a civil obligation to act with due care and ... Show more content on Helpwriting.net ...
Also, the Australian government may introduce a rule that requires registered companies to
participate in a policy in which each company need to design a Corporate Social Responsibility
Committee that will observe every activity conducted and how will it impact those other than the
shareholders, specifically the employees, suppliers, customers and also the environment. The
company would then have to participate in a policy in which it is required to be publicized on its
own website. Although it may be contradicting to the directors' best interest for the company, by
spending an amount on volunteering programs, such as the hunger project to help extinguish famine
in poor countries, it also helps the company to build a better image that in turn, could be
advantageous to the directors.
4.0 Issues of importance
The push for company reporting to include CSR related information in annual reports is of utmost
importance, given the prominence of corporate influence in today's society. The recommendation to
implement triple bottom line reporting would increase the extent to which companies are taking
responsibility for the consequences of their actions, in relation to corporate activities that touch on
environmental or other issues of community concern13
The implementation of the policy requiring companies to establish a corporate Social Responsibility
Committee are

Advantages And Disadvantages Of A Corporation
A corporation is an entity that acts singularly from its owners in the sense that it is separate and
distinct from its owners. The owners of corporations are called shareholders or stockholders. The
shareholders are affected by the organization's profits or losses resulting from the entity's operations.
Corporations have to meet the following advantages: Legal existence: A corporation should be to
enter into contracts, buy or sell, sue other entities or be sued if need be. Limited liability: There is
low or reduced financial risk due to the fact that the entity is separate from its owners. The liability
to creditors and other obligors is limited only to the resources of the entity. Continuity of existence:
Due to a corporation's ability ... Show more content on Helpwriting.net ...
Common stock has the most voting powers while preferred stock only possesses preferential rights
to a share when it comes to the sharing or allocation of earnings and allows its holders or owners
first claim, should the corporation face liquidation. Preferred shareholders also receive dividends
before any common shareholder. When participating the preferred shareholders can share excess
profits with the common shareholders while non–participating preferred stock is limited to only a
fixed dividend. If the preferred stock is cumulative its shareholder is given first preference of all
dividend payments in arrears before any common shareholder can be paid. Investors prefer a
preferred cumulative and participating stock as it has the most return. To record the investment of
the shareholders an asset account is debited and a capital account credited.
Earnings per share also known as net income per share is the amount of money generated by each
individual share of stock if all the profits were to be allocated to the outstanding shares at the close
of the year. It is a part of the company's profit distributed to each outstanding share of common
stock. These earnings per share show the company's profitability. To calculate EPS we use the

The Structure Of Partnership And A Corporation
This essay states that a business using the business structures of a partnership is different from a
business using the business of a corporation in following ways from the listed content. Also,
advantages and disadvantages of these two structure will be compared.
1. Objectives
2.Liability .
3.Continuity of existence
4.Limits on size
5.Formation & Costs
6.Auditors
7.Taxation
1. Objectives
There are some differences between the objectives of the structures of partnership and a corporation.
Firstly, intention of a partnership is making a profit. Partnership is the relation which maintain
running a business between persons with a same goal of profit and includes an incorporated limited
partnership. However, the relation between the person who was involved in the company or league
is either incorporated under the Corporations Law or abide by one of following laws – the Act of
Parliament, letter patent or Royal Charter is not a partnership this Act meaning for. In terms of a
corporation, it is not only confined in its objectives of profit but also more than for profit. In
addition, it shows that a person who carry on business of a body corporate has more profit of who
involved in the body.
2.Liability
In a partnership, each of the partners have unlimited liability for the debts of the business
partnership. Partnership can be created only at least one person has unlimited liability, giving
semblable protection as owners of a corporation. A partnership is not a

Corporatism And Corporations
The main focus of this research has been the review and analysis of the role of government being
supplanted by corporations. The topic of study related to this problem is corporations/corporatism
and their influence in governing affairs. Analysis of corporations will be reviewed through the lens
of Liberalism and Constructivism. Through the application of Liberalism and Constructivism it will
determine if corporatism/neo–corporatism is diminishing individual rights and liberties by moving
government from the public sphere to a private one. This research is important in understanding how
the role of government is becoming a corporate institution, not based on laws but on policies for
profit. The direct impact corporatization of government has

Corporation and Equity Participation
(a) "Nemawashi" is an agricultural metaphor. The idea is that before a farmer plants a seed, he
should prepare the roots and the soil, so that the seed has the best chance of survival. It is a political
process by which an unofficial understanding is reached before a final decision is made on a
particular matter. "Nemawashi" is Bottom–up style decision making (middle management has the
greatest influence on decision making). The Japanese are primarily concerned with harmoniously
working out problems without causing interpersonal frictions, such nemawashi is employed as
simply informal lobbying to gain consensus before action. A complete consensus is essential and
this is achieved by using the process of "ringi". Everyone stamped his chop ... Show more content
on Helpwriting.net ...
If one is greeted with a bow however, they should return the bow, preferably as low as the one they
received. How low one bows determines the status of the relationship between the two. Between
Japanese, subordinates will bow deeply and their superiors will not to the same extent. Before
everyone takes a seat, it is an essential part of Japanese business etiquette to exchange business
cards. In Japan, business cards are called 'meishi'. They are considered not only as serious tools for
establishing business contacts, but also as identification of the individual and the company he/she
represents. Business cards should be printed with one side in Japanese and one side in the language
of the individual's home country. It is in ones best interest to offer their business card with both
hands as this denotes greater respect. Unlike many Western countries where it is acceptable to
'pocket' a business card upon receipt, it is considered extremely rude and disrespectful in Japan. In
comparison it is expected for the recipient to review and memorize the details printed on the card
and then carefully place it in a card holder or pocketbook. As Japanese business meetings are
conducted formally, it is unacceptable for members to dress casually. Acceptable attire for men
includes conservative suits in a dark color. Women are also expected to dress conservatively and
should avoid wearing trousers as Japanese men may take it offensively. In

Reengineering the Corporation
Running Head Reengineering the Corporation
Reengineering the Corporation
In the book "Reengineering the Corporation", Hammer and Champy create a new frame of
managerial relations and organizational bureaucracy. The authors address such important problems
as impact of technology on business environment, new labor relations and organizational structures
affected a modern corporation. The book consists of 13 chapters and an Epilogue discussing
different problems and issue of modern organizational bureaucracy. The authors criticize old
approaches to management based on Adam Smith 's division of labor and methods of business
relations. At the beginning of the book the authors question: "If managements want companies that
are lean, ... Show more content on Helpwriting.net ...
Reengineering is inherently complex undertaking. Changes are made up of interrelated parts,
meaning that the failure of one part may have significant downstream consequences. They are
unique, so past experience is an imperfect guide to the future. They entail the use of borrowed
resources that may not be available when they are needed. They operate in a management quagmire
where accountability is unclear and key actors who follow their own agendas may operate at cross–
purposes. Such an environment is ideal for errors and omissions. There is a constant lurking threat
that the best intentions will go awry, that promises made will not be kept (p. 128). It can be
contained to a degree by the implementation of thoughtful methods and procedures. Reengineering
has radically changed corporations: one element of organizational change that is often overlooked is
compensation strategies. Most companies still compensate employees the way they did decades ago.
However, these pay strategies no longer work in process and team–based cultures. The authors
identify four work cultures (functional, process, time–based, and network) and explain how to align
pay strategies with each one. Chapters 8 and 9, "The Experience of Process Redesign" and
"Embanking on Reengineering" discuss methods and procedures which should be taken into account
on making sure that nothing falls through the cracks. They describe the steps that should be taken

A Corporation, Which Is Sometimes Called C Corporation,
A Corporation, which is sometimes called C Corporation, is a group of company or an independent
legal entity owned by shareholders and authorized by state, with a separate and unique existence
from its owner. Lau & Johnson (2011, p. 195) It is more elaborate than the other business forms due
to the fact that it is costly to set up, involve corporate tax and legal requirement. They offer the
capacity to sell ownership shares in the company through stock and to the public through initial
public offering (IPO), which is the main selling point in pulling investment capital and high quality
employees.
Furthermore, as mentioned above, corporation is established under the law of the state in which it is
filed and in order to start a corporation ... Show more content on Helpwriting.net ...
The disadvantages of corporation is that it is expensive and time–consuming when setting it up and
in operation as well, double taxing and record keeping encumbrances in relation to the entity.
Having said all that, there are basic requirements needed in establishing corporation in other
countries such as United States, India and China and we are going to discuss all about it below.
The process of establishing corporation in the United Sates is easy and straightforward and the basic
requirements needed to establish corporation in the United States of America it involves the
following:
1. Ascertain a legal structure, which depends on the level of control one want to have, business
vulnerability to lawsuits and the financing needs. The type of legal entity chosen will determine the
additional registration requirement, that is, one may have to register with states and/or local
government after deciding on the legal structure and this consideration changes from state to state.
2. Register the business name; this could be Doing Business As (DBA), assumed name or Fictitious
name and it must comply with the rules of the state's corporation division. The name of the new
corporation must not be an existing

Splash Corporation
"Splash Corporation (A): Competing with the Big Brands"
Problem:
Splash Corporation (Splash) is a leading producer of skin care and hair care products in the
Philippines. Founded in 1985, Splash was now the country's leading domestic producer of personal
care products and was billed as "the next Unilever" by BizNews Asia magazine (page 5). However,
competing with the top corporations in the world was no easy task, especially when these companies
were producing low–cost alternative products. Splash knew that there was no way they could
compete in a price war with their much larger competitors, so they had to compete on value if they
wanted to remain a top company in the industry. At this point in 2006, the company is considering
what ... Show more content on Helpwriting.net ...
Technological: Although the Splash Research Institute has done extremely well over the last twenty
years in meeting consumer needs, the company needs to always have a first mover's advantage so
that customers can become loyal to their brand. It is also important to recognize Splash's current
shortcomings. Splash's small advertising budget makes it difficult to compete on promotions with
the large multinational corporations, regardless of the fact that their constant innovation is a major
strength of their company.
Alternatives:
The Splash Corporation should currently follow a market penetration strategy. It is not a good idea
for Splash to enter foreign markets just yet, because one of its strengths is that it is a domestic
company providing products for their people. Thus, the Splash Corporation needs to find other ways
to attracting non–users of your product or convincing current clients to use more of their products.
Accordingly, the alternatives that Splash Corporation has revolve around different target market
strategies.
The first alternative that Splash has is to follow a Full Market Coverage strategy, where the firm
attempts to serve the entire market. This however is probably not a good idea for Splash because the
company will dive into everything without doing the proper research. Their competitors will

Corporations Are Considered People
Should Corporations be Considered People? The recent uproar over whether corporations are people
comes from the Citizens United decision. Although we often hear about how this case allows an
influx of corporate funds, it is safe to assume that very few people have actually read the opinion.
And though the direct and indirect impact on the lives and liberties of the people will forever be
affected by allowing corporate influence on their own governing, most go about their daily
consumption with barely a thought to the immense impact this has on the land of the free. In this
Supreme Court 5–4 decision, the Court states that the First Amendment protects corporate and union
funding of independent political broadcasts in elections. The First Amendment states that "Congress
shall make no law ... abridging the freedom of speech." Or as the Court says, the ... Show more
In stark contrast to the majority, Justice John Stevens wrote a dissenting opinion, stating that "[t]he
conceit that corporations must be treated identically to natural persons in the political sphere is not
only inaccurate but also inadequate to justify the Court's disposition of this case."Invalid source
specified. Stevens observed that, "[a]although they make enormous contributions to our society,
corporations are not actually members of it. They cannot vote or run for office."Invalid source
specified. Moreover, Stevens added that, "Corporations have no consciences, no beliefs, no feelings,
no thoughts, and no desires. Corporations help structure and facilitate the activities of human beings,
to be sure, and their 'personhood' often serves as a useful legal fiction. But they are not themselves
members of 'We the People' by whom and for whom our Constitution was established."Invalid
source

Mice Corporation Ethics
The first ethical issue I discovered while researching the Bounce Corporation scenario is the
company's willingness to prey on individuals that are fascinated by certain video games. One
primary focus of a business is to make profits off the sales of their products. But when businesses
single out consumers that exhibit symptoms similar to compulsive gamblers that organization
displays unethical practices. The Bounce Corporation uses unfair business transactions to solicit
individuals that possess uncontrolled desires to play social networking games and will play money
to satisfy their obsession. Stakeholders should enforce standards that ensure supervisors conduct
business dealings that uphold good ethical standards (Ferrell, Fraedrich,

Enron Corporation's Audit Failure and Bankruptcy

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