Entrepreneurship Analysis

Entrepreneurship has been a part of society for many years. It has encouraged many entrepreneurs to turn their ideas into a business. What is entrepreneurship? According to the textbook Entrepreneurship: Successfully Launching New Ventures written by Bruce Barringer and Duane Ireland states that entrepreneurship is defined as “the process by which individuals pursue opportunities without regard to resources they currently control (Barringer & Ireland, 2012, pg.6).” An entrepreneur defined by dictionary.com is “a person who organizes and manages any enterprise especially a business usually with considerable initiative and risk (www.dictionary.com).” An entrepreneur may establish a business individually or with others. No matter of the type

The first step is to lead by example. Three ways that this can be done is by “leaders who make ethics a part of their daily conversations and decision making, supervisors who emphasize integrity when working with their direct reports, and peers who encourage each other to act ethically (Barringer & Ireland, 2012, pg. 217).” Second, establish a code of conduct in the workplace. A code of conduct is defined as a “formal statement of an organization’s values on certain ethical and social issues (Barringer & Ireland, 2012, pg. 217).”Managers and employees are expected to act a certain way to maintain a non-hostile working environment. Lastly, implementing an ethics training program will educate employees on ethical problems, how to deal with a situation, and their overall

Piercing the corporate veil is “the chain of effects that occurs if the owners of a corporation don’t file their yearly payments, neglect to pay their annual fees, or commit fraud, which may result in the court ignoring the fact that a corporation has been established, and the owners could be held personally liable for actions for the corporation (Barringer & Ireland, 2012, pg. 542).” According to an article written by Charles Jimerson titled The Five Most Common Ways to Pierce the Corporate Veil and Impose Personal Liability for Corporate Debts states that “the existence of fraud, wrongdoing, or injustice to third parties is the biggest red flag when determining whether or not to pierce the corporate veil. In a majority of cases, the claimant is seeking to pierce the corporate veil because of wrongdoing of the company or its owners. Consider the following: (1) Creditor of ABC Corp. receives a final judgment for money damages; (2) ABC Corp. cannot pay the judgment so it shuts down; (3) ABC Corp. transfers all of its assets to XYZ Corp. and XYZ Corp. operates a substantially similar business with the same assets and same employees. In this example, it is likely that ABC Corp. engaged in wrongful, potentially fraudulent actions, by shutting down its business and essentially reopening a new corporation of the same ilk. This is a classic example of a debtor attempting to defraud its creditor. As with any area of the law, it is