Q1. Please discuss how the Uncorporation has evolved and its main characteristics and components and analyze the main differences between Partnership type and Corporation type Uncorporations in different jurisdiction. Do you think business models like uncorporation could meet the needs of small and medium size industries and professionals and why?
An Uncorporation is a type of large business organization. This term refers to any unincorporated business. The purposefulness of setting up an Uncorpoartion is to bring into line managers’ and owners’ welfares, more than in your customary classic corporation. One of its main characteristics is that it does not have any regulatory supervision like other typical corporations. This type of business accelerates legal development and international coordination, facilitates international trade and stimulates foreign direct investment. Uncorporations ensued partially from activities such as corporate monitoring which were very costly and time consuming. The US was the first country to adapt to these new organizational changes, shortly Europe followed, by adjusting some aspects in case law by the ECJ. Company law in emerging and third world countries has also restructured to allow space for Uncorporated organizations.
Legislators designed those new forms of organizations; Hybrid business, this is a mixture of a partnership and a corporation. It is said that, even though there has been difficulties in the evolution of uncorporation laws, “an international Model Act would be consistent with lower transaction and information costs and could help to encourage cooperation between firms situated in different jurisdictions.”
Partnership type & corporation type
This type of hybrid bu...
... middle of paper ...
...hat for personal and business purposes people don’t want to be tied up to inflexible and outdated rules, that possibly hinder the efficacy of their decisions and business activities.
Moreover, even professional firms would benefit from this. As they are increasingly being exposed to the laxity and mismanagement of other parties in which they work with. Therefore, this type of organization and the limited liability trait coupled with it can protect them from other partner’s mistakes or deceit.
To conclude, we can undoubtedly appreciate that this fairly ‘new’ form of business organization could certainly benefit both SME’s and big Professional organizations. The characteristics and features that the Uncorporated organization brings along, unquestionably makes organizations more flexible and efficient, and as a result will benefit their performance overall.
Hirschhorn, L. & Gilmore, T. (1992). The New Boundaries of the 'Boundaryless' Company. Harvard Business Review, 70: 104-115.
Describe the nature of this company and three key issues from the company's Code of Conduct will be examined.
The types of organizational forms are proprietorship, partnerships and corporations. Each has their own advantages and disadvantages. A proprietorship has three main advantages: (1) low cost for start-up, (2) it is subject to few government regulations, and (3) its income is taxed as part of the proprietor’s personal income. Although a proprietorship is a low-cost start-up company, unless the owner already processes the funds, it may be difficult to acquire funds for growth. Additionally, the proprietorshi...
A multinational corporation is an entity that its headquarters is based in one country and incorporates a group of organizations that are geographically distant and have various goals. "Such an entity can be conceptualized as an inter-organizational network that is embedded in an external network consisting of all other organizations such as managers, customers, suppliers and regulators"(Ghoshal & Barlett, 1990). As the organizations develop and find their way into significant growth they are inclined to identify the goals, perspectives, assimilation, and rules of their framework. The role of the managers in such entities is to coordinate organizations that work in various cultures and environments, in which the levels of involvement, diversity,
The ‘unyielding rock’ of corporation law, as established and relied upon in Salomon v A Salomon & Co Ltd, is the concept of the separate juristic personality of a corporation. Out of this century-old principle, the legal structure of modern business was born. The foundation of corporation law thus rests on the concept that a company has a separate legal personality which is recognised in the Companies Act 71 of 2008 (“the Act’).
Acquisition is an action that a company buys or takeover a target corporation to become own or be the main shareholder. Universal acquisitions are around the key corporate methodologies multinational companies (Mncs) utilization to extend, differentiate, or combine their businesses. Nowadays, acquisition activities are very common in business world. Cross-border acquisitions are very common and maintain popular. In addition, acquisitions are still the main connection for multinational’s foreign direct investment (Bhupesh & Vandana, 2013). Mergers and acquisitions are key choices taken for augmentation of an organization's development by improving its creation and showcasing operations. They are constantly utilized within a wide show of fields, for example, data innovation, telecommunications, and business procedure outsourcing and in addition in universal organizations so as to increase quality, stretch the client base, cut rivalry or enter into another business or item section.
Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
Gone are accustomed differences in national or regional preferences... The globalization оf markets is at hаnd. With that, the multinational commercial world nears its end, аnd so does the multinational corporation… The multinational corporation operates in a number оf countries аnd adjusts its products аnd practices to each – at high relative costs. The global corporation operates with resolute consistency – at low relative cost – as if the entire world were a single entity; it sells the same things in the same way everywhere…
Besides of that, the importance of principles of separate legal entity was first established in the landmark case of Salmon v Salomon & Co Ltd (1897) and the principal of separate legal entity is also enshrined in section 16(5) of the Companies Act 1965. Additionally, the effect of corporate personality is to create a “veil of incorporation” between the shareholders and the company, preventing recourse to the shareholders for the debts of the company. By the way, given that it is impossible to envisa...
...tion have distinguished that subsidiary organization is a separate lawful substance yet despite the fact that holding organization control the subsidiary organizations and particular business of the organization inside a gathering however it is settled rule that business of subsidiary is divided from the Holding organization.
Robbins et al. define an organization as ‘a deliberate arrangement of people to accomplish some specific purpose’ (2000: 5). While Wood et al. consider organizations as ‘collections of people working together in divisions of labour to achieve a common purpose’ (1998: 15). These definitions fits a wide variety of groups such as sporting clubs, religious bodies, voluntary associations etcetera however for this essay will concentrate on business organizations. A Business organizations’ purpose is to deliver and product or service in such a way that a benefit is gained for the organization, profit or goodwill for example.
Large corporations have been attempting to find a balance between the traditional hierarchical structure and the flexible local entrepreneurial structure for many years. Increasing global competition has made it critical that multinational enterprises be both globally integrated and locally responsive at the same time (Bartlett & Ghoshal, 1988). Sohn & Paik (2004) describe the efforts of Toshiba to achieve a hybrid of centralized control and localized autonomy. Irrespective of the structure chosen, corporations can all be placed somewhere along the continuum between centralized and decentralized management. A centralized structure will be slower to respond to changing market conditions but provides stability and control. A decentralized structure provides autonomy for local businesses to make their own decisions quickly, ; however, the decisions may not align with the parent organizations' strategic objectives and ethics. Many business decisions involve conflict between making money and ethical treatment of employees, customers, and the environment. Centrally managed organizations are more likely to align decisions with a universal corporate code of conduct. Autonomous subsidiaries will make decisions that are reflective of the local cultural values. The risk to the parent organization is that some of these decisions may severely conflict with shareholder values. Treatment of women, children, and respect for the environment are some areas where regional differences exist.
Organizations have different structures and cultures depending upon location, size, environment, etc. and have an impact on behaviour of its employees. It shows the flow of authorities, responsibilities and information of the business. Organizations can be structured on the basis of area, structure and functions.
With globalization there has been establishment of multinational or transnational corporations. This shows there is an increased...
Simple structure is widely used by small businesses in which the owner directly manages the day to day operations. The benefit of using the simple structure is that it is simple. One person normally calls the shots and takes full responsibility for the businesses success and failure. “It’s fast, flexible, and inexpensive to maintain, and accountability is clear” (Judge & Robbins, 2007, p.546). Unfortunately, using simple structure as an organizational design limits the business of its full potential, as it grows, it becomes more difficult for one individual to oversee the daily operation and make quick executive decisions. Once an organization reaches this point, it must change its organizational design in order to remain competitive within its market.