Business Legal Environmen(230) Essay Example | Topics and Well Written Essays - 1250 words

Business Legal Environmen(230) - Essay Example As such to the disadvantages will now be discussed. The first of these is with regards to the fact that the sole proprietorship is very unlikely to garner any number of investors. This is due to the fact that investors are ultimately leery of investing in the business venture whose decision-making structure and ownership is all concentric upon single individual. Similarly, a secondary drawback is concentric upon the strength that has already been listed; the fact that all responsibilities and business decisions necessarily fall upon the shoulders of the sole proprietor. As such, sole proprietorship oftentimes places an undue level of stress and anxiety upon a single individual and therefore makes it impossible for him/her to both manage the business and maintain any semblance of a normal life. 2. With regards the advantages of a corporate business entity, the first of these is with regards to the fact that it is much easier for this entity to gather and raise money from investors. Du e to the fact that a pooling of capital and/or property can be rapidly affected within such a means, it is likely that such an entity will be able to garner a relatively higher level of investment as compared to the other entities thus far discussed. Likewise, a secondary advantage of the Corporation is that unlike the sole proprietorship, the individual shareholders are not personally liable for any debts that the corporation might incur during its operation. Conversely, one of the distinct disadvantages of the corporate business entity is with regards the fact that it is liable for a double taxation. The reader can understand this to mean that the profits of the Corporation are taxed as well as the individual shares that the stakeholders earn as a form of dividends/payments/salary. A further disadvantage is with regards to the fact that not all stakeholders will have an equal share with regards to a voice in how appropriation is wrong. As a function of the fact some shareholders w ill have a much stronger voice and level of ownership, their decisions will be taken much more seriously than those with a lower level of ownership or shares. 3. With regards to piercing the corporate veil, this most directly refers to the legal decision and ability to assume that the rights or duties of incorporation are also the rights and duties of its stakeholders. In this way, the reader can understand why a corporation is typically viewed as a separate legal person; completely and entirely responsible for the debts that it incurs as well as the credits that it is owed. Ultimately, the decision to understand the Corporation as a separate person is only pierced when an exceptional situation arises that forces the law to consider the Corporation in a non-personhood manner. More often than not, litigation with regards to piercing the corporate veil is generally concentric upon the level and extent to which wrongful conduct, proximate cause, or unity of interests might have been vi olated within the initial startup or subsequent actions of the Corporation. Similarly, as was briefly discussed above with regards to the disadvantage of entering into a corporate entity, the double taxation standard will be briefly discussed below. Firstly, whereas a sole proprietorship only allows for the individual to be taxed upon their earnings, the Corporation, regardless of its size and the number

Casestudy of banks R us Case Study Example | Topics and Well Written Essays - 1000 words

Casestudy of banks R us - Case Study Example Strategic performance directly influences strategic goals; hence, it is even more critical to an organization’s success. On the other hand, operational performance management is defined as the alignment of all business units / functions of an organization to accomplish core business aims of an organization. Organizational performance is measured against standard rates of effectiveness, productivity, efficiency, regulatory compliance and other such indicators. Banks R Us had primarily focused on deposits, withdrawals, and loan facilities by creating brand loyalty. It thrived by providing a low fee as well as a highly personalized realm of banking services. Nonetheless, the low profit margins prevented large-scale growth for the bank. However, with escalated financial competition and emergence of Internet banking, the strategic performance of Banks R Us deteriorated. This is evidenced by a downfall in market share and operating profits. Thus, new strategic goals and plans are be ing established in order to enhance strategic performance once again. The new strategic goals are two-fold: to widen the current customer base by provision of a variety of financial products and to reduce transaction costs for all customer segments. Strategic goals can be accomplished through successful strategic performance. The success of strategic performance lies entirely upon improvement in operational performance. ... As more and more customers are provided customized services, the inflow of cash to the bank is expected to increase. In addition, the introduction of Internet banking as currently servicing 80% customers is unprofitable; hence, strategic performance is poor and needs improvement in this area too. Moreover, strategic performance needs to be focused on changing the previous image of Banks R Us as a transactions processor of cheques and deposits to a novel image of an excellent financial advisor. The basic contention is to make the bank as attractive as possible to existing customers as well as potential customers. The bank lacks ‘good advertising, good location, and word of mouth’ as quoted by general manager of operations, Pamela Andrews. Therefore, strategic performance should take the marketing aspect of banking into account. Banks R Us needs to transform the perspective of customers of not being a ‘logical source for products like managed funds, superannuation fu nds, insurance and financial advice’. Operational performance should involve advertising through various channels, employment of financial product specialists and provision of advisory services to build customer confidence and alter the previously held image. Industry data has revealed the existence of two market segments. The first are interested in the lowest priced personalized services of standard financial products such as savings, loans and withdrawals. Market statistics suggest that Banks R Us’ strategic performance is appreciable in this segment; however, slowly they need to encourage these customers towards Internet banking for reaping even greater profits. The other market segment comprises of customers interested in purchasing all kinds of