The Legal and Ethical Environment of Business

Introduction The company in question is involved in manufacturing where it produces a variety of wood products. It has been a sole proprietorship form of a business unit and currently. However, the owner has plans of converting the company to another form of business unit by considering various factors. However, the entrepreneur does not comprehend all forms of business units and thus he needs to make an informed decision before choosing the form of business that suits his situation.Advertising We will write a custom critical writing sample on The Legal and Ethical Environment of Business specifically for you for only $16.05 $11/page Learn More Discussion of Various Forms of Business Units Sole proprietorship Sole proprietorship is the simplest form of business organization as it is formed and managed by a single individual. With this form of business, the organization is not registered on its own, hence cannot be separated from the owner (Lau Johnson, 2011). Moreover, the owner is entitled to all profits generated by the business at the end of a financial year as well as losses in case they arise. However, the owner is responsible over all debts and liabilities entered into by the business. In the formation of a sole proprietorship, the status automatically passes to the owner. However, for the business to be legal, the owner has to register and obtain the necessary licenses and permits. However, rules regulating the registration process differ in accordance to the location of the business and the industry. In terms of taxation, the owner has to withhold taxes and submit them to the relevant authority. Moreover, the business cannot be taxed separately since incomes generated are also the owner’s incomes. Advantages Sole proprietorship is cheap and easy to form for structural costs are quite low as compared to other forms of business units. In addition, legal costs in relation to obtaining necessary documentation, licenses, and permits are always at minimum. In addition, it is easy to prepare and file tax returns for the business is not taxed separately from the owner, which makes it easy to fulfill reporting requirement in relation to taxes. Decision making process is simplified and faster since the owner is the sole decision maker. Sale and transfer of properties takes place at the discretion of the owner, hence maintenance of secrets within the organization (Lau Johnson, 2011, p. 236). Disadvantages In case the business falls into liability and is unable to pay, the owner is held liable for the debts and obligations of the organization. In addition, any liable act committed by the employees of the business is charged against the owner. In addition, the owner may not have expertise in all areas of management; therefore, he or she may find it difficult to run the entire business. Where there are no finances to start up the business, it is hard to raise capital, especially through seeking financial a ssistance from banking institutions.Advertising Looking for critical writing on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More General partnership A partnership defines the relationship that exists between two or more people who have an aim of getting involved in business practices. In the course of carrying on a business, all parties involved share profits and losses as agreed. In the case of a general partnership, each of the partners contributes capital, skills, and even labor in return to sharing into the profits and losses of the business. Although, there is no regulation requiring a partnership to be registered officially, it is always recommended for people to do so (Lau Johnson, 2011, p. 240). In a court of law, evidence of two or more people carrying on a business is enough to call it a general partnership. It is also acceptable that a sole proprietor can change his or her business to this form. In the case stu dy, the sole proprietor is thinking of changing the form of his business to something else. However, if he settles for this form of business, he must be willing to have an additional partner into his business. Termination depends on the type of that the business partners were in; however, it can also end due to factors stipulated in the agreement. Advantages Raising capital is quite easier than when compared to a sole proprietorship for each partner contributes a certain portion of the capital. As opposed to a sole proprietorship, a general partnership can also access loans from financial and non-financial institutions. In the presence of an agreement, it would be easier to solve any problem that arises among partners. Division of labor can easily be exercised, as each partner will participate in running the business. Disadvantages In a general partnership, every partner is liable to all debts and liabilities of the organization. Unfortunately, all profits generated by the business are shared among partners. In addition, due to agency relationship that exists among partners, a mistake made by one person affects all other partners in the business. Death of a single partner means an end to that partnership. Partners are also not free to transfer the ownership of their share to another person freely. Secrecy is not guaranteed in this form of business since every partner is authorized to transact on behalf of all others and all have equal access to books of accounts (p 245). Limited partnership As opposed to a general partnership, limited partnership must involve proper documentation. Partners willing to venture into such a business must also be willing to have a specific location. The partnership consists of limited and a general partner. The limited partner enjoys limited liability, whereas general partners are held liable to the extent of their personal liability. Creation of a limited partnership begins by filing limited partnership certificates through the re levant agency.Advertising We will write a custom critical writing sample on The Legal and Ethical Environment of Business specifically for you for only $16.05 $11/page Learn More Advantages Not all partners are liable to the debts and liabilities of the company. Limited partners are not liable to the debts of the partnership. In case of general partners, they are only liable to the extent of their contribution and not the entire liability. Raising capital for the partnership is quite easy. Disadvantages Any legal liability attached to the partnership can be passed to the general partner if the business is unable to meet its obligations. On the other hand, limited partners are passive investors, as they are not allowed to assume active participation in the management of the business. The process of setting up may be long and cumbersome due to the registration procedure required. General partners end up bearing heavy and unnecessary risks of the business. C-corporation These traditional corporations are currently retained by most large organizations globally. The C- Corporations are governed by a board of directors, officers, and bylaws. Stock certificates are also issued to the initial shareholders. Formal paper work is filed in relations to stipulations within the state where the corporation is set up. Advantages The corporation ensures protection of the owners’ properties through separation of actions of owners from those of the corporation. The business is a legal entity that can act on its own; therefore, can sue or be sued without involving the stockholders and other officers. Shareholders have powers to vote for the directors based on their number of shares as stipulated in the articles of incorporation. Shareholders can freely transfer their shares without consultations. Disadvantages Lengthy and bureaucratic procedures are followed during incorporation. Decisions are made by officers and director, and thus the decisi ons may not align to the wishes of shareholders. These organizations are subject to corporate taxes that translate to additional costs to the organization. This corporation is subject to double taxation, since shareholders are also taxed on their dividends (Lau Johnson, p.249). S-corporation An organization has first to move to a C-Corporation before being upgraded to the status of an S Corporation. However, an S-Corporation cannot accommodate more than 100 shareholders. Moreover, it is the responsibility of these shareholders to pass their corporate income, deductions, losses, and credit. S Corporations have one class of stock. Advantages Shareholders have the privilege to choose their profits and the extent of their losses. The corporation is also not subject to double taxation as opposed to C-Corporations for the corporation reports the flow of incomes and losses on members’ personal tax return, hence avoiding double taxation.Advertising Looking for critical writing on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Disadvantages The corporation has only allowable shareholders, thus restricting partnerships and alien shareholders. The corporation is also selective on some certain financial institutions, insurance companies, and some domestic and international sales corporations. For a small business, joining this corporation is complicated, as one has to fill some forms to be granted permission . Limited liability company This business organization has a membership of 10 to 20 members, but it should not exceed 50 members for professionals. Members’ property and shareholders are protected and thus cannot be used to settle financial obligations of an organization. One of the advantages of this form of a company is that shareholders’ wealth is protected. The company is also a going concern since the death of any member cannot affect the continuity of operations. However, the company is subject to double taxation since both the company and shareholders’ dividends are also taxed . Recommendations From the case presented above, it is evident that the business has outgrown its capacity as a sole proprietorship. Since the organization had not yet formed any form of the corporation, the owner should upgrade the business to a limited liability company. The organization needs to increase its earnings, thus leading to an increment in profits that can cater for the increased expenses in relation to those of other corporations. A limited liability company could suit the organization, as it is easier to form in comparison to the S and C corporations. Although the company is subject to double taxation, I strongly recommend this form of business organization. For the case of these other corporations, there are stringent measures, as stipulated by regulations governing the formation of these organizations. With the expansion of a business, an organization is likely to seek services of expatriates because such a move comes along with inventions and innovations mostly in technology. This aspect will be a crucial idea for the business that is dealing with timber products. Improved technology would ensure proper utilization of available resources and introduction of new designs. Although I support strategies outlined by S Corporations, I would not recommend it because this form does not favor alien shareholders. I strongly recommend a limited liability company as it would ensure wealth of shareholders is safeguarded. Moreover, the sole proprietor was used to dealing with a small number of employees; therefore, recommending companies that would require many shareholders would amount to incompetence. A limited liability company is suitable, as the owner will only have to deal with less than 50 shareholders, and thus management becomes easier. Reference Lau, T., Johnson, l. (2011). The Legal and Ethical Environment of Business. Irvington, NY: Flat World Knowledge. This critical writing on The Legal and Ethical Environment of Business was written and submitted by user Ignacio Flynn to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Abuse vs Discipline Essay Example

Abuse vs Discipline Essay Example Abuse vs Discipline Paper Abuse vs Discipline Paper Blake Moss Abuse Versus Discipline A mother spanks her child in a public parking lot. While a nearby citizen watches in horror and begins to dial 911. Is this wrong? Does the mother have authority to do this to her own child? Who gets to decide how the mother disciplines her child? Why here? These are the questions that come across the mind of todays society. Most people would agree that the child did something â€Å"wrong,† but opinion collide on how the mother should discipline the child. Parents from generations ago would not have thought twice about this incident. In todays era, as technology has progressed so has the ideas of child abuse and discipline. What is the difference between child abuse vs. child discipline? Then Versus Now Disciplining children in the 1950s has been seen as strict, harsh and oppressive . In fact, children were often meant to be seen but not heard. Back then , if a child forgot to say â€Å"sir† or â€Å"maam† behind their statement to a teacher or another adult, he or she had the possibility of taking a blow from a switch to the rear. This is a lot different from generations growing up today. Children are almost never taught proper manners when addressing higher authority figures. Some parents turn their heads at any sign of physical discipline. Statistics Statistics show a report of child abuse is made every ten seconds. Another shows that more than five children die from child abuse every day. That means everyday about 9,000 reports of child abuse are made. Children are less likely to die from child abuse if they are active in the community or attend a public school system. 80% of children who die from child abuse are under the age of four . The other 20% are in elementary schools. This dramatic difference is due to authorities and professionals helping to protect children. Why dont the children tell? Statistics say that over 90% of children who are sexually abused, know who their abuser is. Children are terrified of their abuser so, they protect abuser in hope that they wont hurt them or their family. 30% of the children who are abused will go on to abuse others later on in life. The abused have a 80% chance to developing some kind of psychological disorder. They have a higher risk of being sent to prison as will. Statistics show that 14% of all men in prison were abused as a child and that 36% of women in prison were abused. Abuse and Neglect by Law Child abuse by law in the Child Welfares Information Gateway in Missouri as â€Å"Any physical injury inflicted on a child by other than accidental means by those responsible for the child’s care, custody, and control. † This means that any physical punishment such as a bar of soap in the mouth, is seen as abuse. The person who put the soap in the childs mouth is abusing them. Neglect is defined in this article as well it is â€Å"Failure to provide, by those responsible for the care, custody, and control of the child, proper or necessary support; education as required by law; nutrition; or medical, surgical, or any other care necessary for the child’s well-being. † When the state says this, it does not define â€Å"proper support. † This leaves room for interpretation. In some parents mind if you do not celebrate a child’s ‘B+’ grade then you are neglecting him or her. Is it correct for the state to tell parents how to discipline their children in certain ways? Abuse and Neglect by Definition The dictionary says child abuse is â€Å"mistreatment of a child by a parent or guardian, including neglect, beating, and sexual molestation. † By this definition the amount of the action is not defined. Also, beating and neglect are not defined; this leaves room for interpretation again. Some may interpret it as laying a hand on a child at all, where other may take it as leaving a bruise. Neglect can be defined as â€Å"failure of caretakers to provide adequate emotional and physical care for a child† in the dictionary. This â€Å"adequate† definition still has room for interpretation. This may mean enough to stay alive such as one meal a week, or it may mean three large meals a day. Who gets to make these interpretations? Is it the caretaker or parents or the child or is it the state? Discipline by Definition Discipline is â€Å"the practice of training people to obey rules or a code of behavior, using punishment to correct disobedience. † A question that comes to mine is; who gets define the amount of â€Å"punishment? † And who gets to decide the rules and code of behavior? Is it the parents or guardians, or is it the governmental agencies? If a child is doing something wrong and the parent chooses to â€Å"swat† the child then they are violating the law because they are inflicting â€Å"physical injury inflicted on the child. † Is this wrong or is it right? Christians Opinion Proverbs 23:13-15 says â€Å"Do not withhold discipline from a child; if you strike him with a rod, he will not die. If you strike him with the rod, you will save his soul from Sheol. My son, if your heart is wise, my heart too will be glad. † This is not saying to beat until the child can not stand it is saying that if a parent uses physical discipline they will not die. Discipline your son, for there is hope; do not set your heart on putting him to death. † This quote comes from Proverbs 19:18. So what is Christians view on discipline? It is okay to use physical and mental discipline. God elaborates throughout his holy book that He not only believes in physical discipline, but recommends it. He states this multiple tim es in the bible and shows many examples of it. He is not encouraging child abuse by any means. However, by the ideas of society now; God would find abuse alright. No Discipline What would a child grow up to be if he or she were never disciplined? Spoiled. If a child was never told â€Å"No† they would come to the conclusion that they were always correct. Even if that was not the case, a child would never quite know the meaning behind right and wrong. They would never learn to respect others and even worse themselves. Hard work would no longer play a major role in the development of life without discipline. In the movie â€Å"A Christmas Story† Ralph says a curse word in front of his father, and he is punished by a bar of soap in his mouth. Now in your opinion is this wrong? After Ralph is sent to bed his mother puts the bar of soap in her mouth for the same exact reason. She was brought up to believe that it is wrong to curse and she knows that it is only fair for her to also be punished. If the mother had never been punished by the soap she would of never learned to punish her children in the same manor. This is only one example why discipline is necessary. Children might not think that it is fair to get a spanking, but they learn their lesson. A child without any disciple will never know right from wrong or bad verses good. But, where is the fine line drawn between discipline and abuse? Side Effects Physical abuse and neglect have immediate and long-term effects on a child’s development. The long-term effects can be seen in higher rates of psychiatric disorders, increased rates of drug and alcohol abuse, and a variety of relationship difficulties. The most common perpetrators of child abuse and neglect are found in people who have been abused and neglected themselves. There is proof to show the connection between child abuse and the neglect and psychological, emotional, behavioral, and interpersonal disorders later in his or her life. Studies have shown that a child uses the parent’s state of mind to regulate the child’s own mental processes. A child needs a sensitive and responsible parent in order to form their own mind set into knowing right from wrong. Children who have been sexually abused are at significant risk of developing anxiety disorders, major depressive disorders alcohol abuse drug abuse and antisocial behavior. Children who were sexually abused, also have a higher risk of becoming a predator themselves later in life. In the novel â€Å"A Child Called It† by David Pelzer, you see the major physical abuse and neglect that he endured for many treacherous years. This book shows you how an abused mother continues the cycle of abuse on her own child. If you continue reading the novel series you come to a book called â€Å"A Man Named Dave,† throughout this book you see the exact troubles that a grown man struggles with in order to overcome the effects of child abuse. This series shows the horrendous cycle of abuse, not only affecting the child but, people they encounter for the rest of their life. The Effort to Stop AbuseKids Matter Inc. is a group of parents in Milwaukee trying to make child abuse and neglect extinct. The members come from all different types of professions such as, doctors and teachers. They are a small organization that puts volunteer energy into their neediest kids. This organization was formed in 2000 and has been growing rapidly ever since. Every Child Matters is another organization devoted to stopping child abuse by policies. This effort is a paper filled effort. They try to promote new policies to give children the necessary equipment to have a better tomorrow. They ensure that children have access to affordable, comprehensive health care services. They promote and expand the early-care and learning opportunities and after-school programs. Also they prevent violence against children in their homes and relive child poverty. Child Welfare is the most well know child abuse organization devoted to protecting children. This organization is sponsored through the government. It allows the group to actually step in and take the child from their home of abuse, into a home with love and affection. This agency helps protect children from their abusers. The Child Welfare’s website provides all kinds of information which regards to protecting children. They have state by state abuse definitions. This website has been helpful in trying to define â€Å"child abuse by law. † Also it shows the guide lines to mandatory reporting of child abuse. Mandatory Reports In the state of Missouri, professionals are the only people required to report abuse. This is the law in Missouri and in 33 other states. In Missouri, the professionals that they are meaning are medical, educational, religious, governmental, and photographers. Also, any other persons responsible for the care of children must report. Do these professionals know the difference? Sometimes they might be able to tell the main difference such as a red mark versus a deep bruise. It would be difficult for some professionals to tell because children are clumsy. The exceptions to these policies are two main people. They are the religious and governmental. For the religious, there is a â€Å"Clergy-penitent privilege. † This is to protect the people who talk to their priest. This protects them so the person who does the confessional does not have to suffer any more. The governmental exception is the â€Å"Attorney-client privilege. † This exception is only acceptable in 22 states. This privilege is specifically confirmed. Conclusion In conclusion children do need an understanding of discipline.. discipline allows the child to grow and learn there are boundaries in life. When discipline becomes beating a child nothing is learned. Abuse only teaches the child it is ok to abuse others. Parents determine the amount of discipline the exception to this is when the parent takes it to far and teaches or government agencies may step in. abuse can be stopped if the community will do its part and help raise children in a good structured environment