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Backpoffice Case Study

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Brief – Prepared for BackOffice 1 Brief – Prepared for BackOffice W C Patten University – MGT313 Brief – Prepared for BackOffice 2 Constitutional Rights and Guarantees Regarding Business Operating as a business, BackOffice has certain rights and guarantees under Constitution and state and federal legislature. Furthermore, laws regulating business exist and BackOffice would have to comply with these. Currently, the Consumer Financial Protection Bureau (CFPB) is considering regulations that could regulate and restrict the types of transactions BackOffice plans to automate. It remains to be decided whether or not the CFPB has such authority. As early as 1819, the U.S. Supreme Court has given to corporations some of the rights of personhood (Trustees…show more content…
The offended party can press charges if necessary in order to seek out a legal remedy. Different types of performance exists. For example, substantial performance stipulates that a party must perform their duties in a sufficient manner (with only slight variances from exact contract terms), whereas strict performance stipulates that a party must perform their duties exactly as stated in the contract. If BackOffice releases their application before it is fully debugged, certain issues could arise that could be costly to BackOffice’s subscribers. BackOffice must be careful in authoring contracts and making business deals, as certain terms in a contract could affect BackOffice adversely. For example, if strict performance is stipulated in a contract that BackOffice agrees to, and application problems arise contrary to contract terms, BackOffice would be in breach of contract. Legal damages could impact BackOffice and bad press could also ensue, further hurting business opportunity. However, if all of BackOffice’s contracts involve substantial performance, then it is possible that BackOffice could release the application without debugging without risk of damages. BackOffice could be performing substantially if only a few issues arise that are not very costly or disruptive to business processes. This means that BackOffice should debug at least to the point of certainty that no major issues will…show more content…
A partnership, corporation, or limited liability entity are the most probable choices. However, it is not recommended that BackOffice become a partnership. Although a partnership may seem attractive because it is formed and dissolved rather easily, partnerships have unlimited liability – the partners can be held personally liable for debts or acts of the partnership. Furthermore, another component of partnerships, joint and several liability, means that partners can be held liable for the acts of another partner. Should one partner make a bad decision, the other partners could also share in the responsibility. Therefore, it is not recommended that BackOffice form as a partnership. A corporation format would mean that BackOffice has only limited liability – an attractive option. Moreover, the company could continue to exist after the founders perish. However, corporations must also go through an initial public offering, which leads to having shareholders and a board of directors – both of which could limit the autonomy with which the company operates. Further, corporations are double-taxed. Given that BackOffice is currently a small enterprise, it is recommended that BackOffice form a limited liability entity. Limited liability entities (or limited liability companies; LLCs) integrate attractive elements from both partnerships and corporations. LLCs have the option of being taxed like
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