Find an article that relates to the following chapters: please include the current event article link

Chapter 13: Choice of Business Entity, Sole Proprietorships and Partnerships

Chapter 14: LLCs and LLPs

Chapter 15: Corporations

Melvin, S. (2020). The Legal Environment of Business, A Managerial Approach: Theory to Practice (4th ed.). McGraw-Hill Higher Education (US). https://devry.vitalsource.com/books/9781264086634

• The articles that are posted are to be related to the material covered in the weekly reading with an emphasis based on the topics of the course.
• The discussion is a student-led discussion on current events in the news relative to the material in the course.

Business Associations and Corporations Introduction This week we begin by reviewing the various legal forms of doing business. Although there are numerous possibilities, four such business forms currently dominate the market. . Sole proprietorship {DEA} . General partnership . Corporation (Inc) . Limited liability company {LLB} Financing and operation of these various business types differ greatly. We are all familiar with giant publicly traded companies that ourish on the New York Stock Exchange. But many small companies, even corporations, raise signicant funds and are factors on the competitive business environment. Common Forms of Business Organizations in the United States There are a number of forms of doing business in our country, and each has advantages and disadvantages that must be considered when selecting the stmcture for one's commercial enterprise. Several questions should be considered carefully before selecting a structure for moving forward into the business world. . What is the ease and cost of forming the business? . How much money is required for the startup, and how will it be funded? . Who will be the founder of the organization. and who will control ownership interest? . Who will manage the ongoing operations? . How will ownership and control be transferred? . How will the business entity be taxed? . What is the life expectancy of the organization, and how can it be dissolved? . What is the potential liability of management? Of owners? It is necessary to understand and consider all of these aspects of the various forms of business in order to make a proper decision that will best serve the needs and goals of the owners. This is tme both in the stan~up phase of the business and also in the long-ten'n, successful development of the enterprise. There are roughly eight or nine forms of business, but four are dominant in today's world; Common Forms of Doing Business Sole proprietorship [may be referred to as a DBA [doing business asl} Partnership Corporation (Inc.} Limited liability company {LLC} Description An individual owns and operates the business and is personally liable for all of the debts. This type of business entity cannot be transferred to another owner. This is when two or more individuals work together {ti-Jo or more persons co-own a business for prot); defined as partners, they are "joint and severally liable\" for the debts of the organization. This is a legal articial entity created by statutes in the various states that provides limited liability for the owners. This type of business is the most successful at raising large amounts of money through the sale of stocks and bonds. This is an entity that combines the best elements of a partnership and a corporation. This organization is taxed much like a partnership but with liability limited to the ownership. Classification, Funding. and Management of Various Types of Business Organizations In considering the details of the various forms of business. our initial focus will be on corporations. How are corporations formed and governed? How do corporations raise money in capital markets? What competitive concerns arise out of mergers or combinations of companies? Corporations are formed by state statutes with Delaware being the most popular base for incorporation. Corporations offer important advantages for larger rms doing business. such as limitation of liability. the ability to raise capital through securities markets. and perpetual existence. Elutdon't be lulled into a false sense of security; there are instances in which corporate owners can be held liable. The doctrine of \"piercing the corporate veil" provides an exception to the claim of unlimited protection. Piercing the corporate veil has the effect of holding corporate shareholders responsible for the debts of the entire corporation. In comparison to corporations, some other popularforms of businesssole proprietorship, partnershiprely almost entirely on the owners for business funding. specically start up funds. As these business organizations build ownership of valuable assets, they may gain access to bank loans and the ability to acquire nanced acquisition of land. buildings. and equipment. Sole proprietorships rely totally on the management of the owner. and to a major degree. partnerships, and limited liability companies are also dependent on ownership for both strategic direction and day-to-day operation