The popularity of the internet and the benefits of the “Information Age” which has created the possibility for accessing information through electronic data interface and allows consumers and businesses living worlds apart to exchange information and do business on line. For a business involving craft items and their universal appeal, there is no better market medium than the internet. In consideration of this business, I would suggest a domestic corporation because of the numerous advantages of this form of business, as compared to the other forms of partnership. The organization structure could be either centralization, or decentralization.
The fact that matters most in any organization is to properly coordinate the actions of employees to achieve organizational goals. And the way to go about doing that, is by combining tasks allocated to groups – departmentalization; configuring a system of division of labor to create specialized tasks, proportioning span of control, and adequately formalizing rules and procedures to shape up employees’ jobs and activities
The current popularity of businesses on the internet, and its capacity as a market medium to reach a large volume of customers worldwide has gotten entrepreneurs exploring all the available options. Considering a business involving craft items and its universal appeal, the
World Wide Web is the most appropriate conduit to reach potential customers word wide. My brother and I are to start the craft business and my suggestion would be for us to opt for a domestic corporation business structure. I would need to convey this message to my brother in the context of the advantages of a domestic corporation over the other types of business partnerships, and in this particular case, making craft items and selling them on the internet, which has the potential to expand on a national, or even international level. A corporation would be an ideal place in running this business in order to achieve its fullest potential, and as business owners to maximize profitability. Even though we are creating a domestic corporation initially, government regulations give this type of business the latitude to expand to the level of an alien corporation in another state, or even a foreign corporation, outside the country.
Compared to other types of business partnership, a corporation is considered a separate legal entity, with some very specific advantages over other forms of business ownership. The biggest advantage of this form of business ownership is the limited liabilities of the owners. The flexibility the incorporators have in running the corporation and not being directly involved in the general operations, makes a corporation very attractive for the entrepreneurial mind. A
corporation as a legal entity created by the state, with its assets and liabilities separate from its owners. As a legal entity, a corporation has many of the rights, duties, and powers of a person; such as the right to receive, own, and transfer property. Corporations can enter into contracts with individuals, or with other legal entities, and they can sue and be sued in court. After securing a corporate charter, the owners hold an organizational meeting at which the corporation’s bylaws are established and a board of directors elected, and rules and procedures for their operations are also described in the bylaws. The corporation reserves the right to go public or be private. The fact that the corporation can sell shares to enable other people, including employees to own stocks, which makes them legal owners of the corporation, and couple with the fact that board of directors, internal or external, and chosen by the stock holders to oversee the general operation of the corporation and set the long-range objective of…