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Incorporation

Incorporation is the act of selling out shares of a company to generate revenue. Questions about incorporating, companies that are or will incorporate, or companies that are already incorporated can be asked here.

1,040 Questions

What is the difference between Inc and ent?

Enterprises and incorporated business have very few differences and sometimes no difference at all, if the company chooses to call itself an enterprise. The word enterprise infers that something is growing or getting established, while incorporated has a simpler inference which usually just implies that it is a business. Also, incorporation is a legal step in order to form a business within the bounds of the law, while to call yourself an enterprise does not carry that meaning.

What is interpronuership?

Assuming you mean intrapreneur:

Entrepreneur - Someone who risks time and money on starting a business.

Intrapreneur - Basically an entrepreneur except they are already an employee at an organization that helps it grow, not always do they risk money since they are an employee not owner (generally.)

'why would unimited liability be considered as one of the biggest drawbacks to sole proprietorship'?

Because if the company gets sued, the sole proprietor could not only lose the entire company, he or she could also lose savings, home, credit, and everything else. In a limited liability structure, the creditors can usually only obtain whatever assets the company owns, not the property of the shareholders or members who do not actually manage the company.

Abbreviation for incorporation in possessive form?

Create the possessive form of an abbreviation in the same manner as you would for a word or term that was spelled out completely. Add 's for the singular possessive or an apostrophe only for the plural possessive.

  • the IRS's district offices
  • AT&T's 1-800-telephone number
  • NBC's newscast
  • IBM Corp.'s district sales office

What is an empresario?

An empresario was a person who, in the early years of settlement in Texas, had been granted the right to settle on Mexican land in exchange for gathering and taking responsibility for the new settlers.

If a sole proprietorship files a chapter 7 bankruptcy can they keep ther truck which is their business?

You need to let your attorney know that you wish to reaffirm the debt on the truck. In order to keep it, you have to remove the debt from bankruptcy protection, keeping in mind, that you can't seek protection from the debt for seven more years.

What are the advantage and disadvantage of law?

law is a rules governing peioples behaviour in the society. law is a rules governing peioples behaviour in the society. law is a rules governing peioples behaviour in the society. law is a rules governing peioples behaviour in the society.

Which corporations are exempt of 1099?

For 1099-Misc, Int or Div reporting almost all corporations are exempt (Legal Corps/lawyers are the one exception I can think of).

How fast can you incorporate a business?

Incorporate formerly The Company Corporation, is the fastest and easiest way to incorporate your business online. has helped over 750,000 small businesses create their LLC, C Corporation, S Corporation or Nonprofit online!

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Is fashion design a good career?

Yes fashion is a pretty good occupation. You can make a nice living and if you are really big in fashion then you can improve even more.

Define unlimited liability?

A type of investment in which a partner or investor can lose an unlimited amount of money. Opposite of limited liability.

What is best for a home business a llc or inc?

Like a Corporation, an LLC offers limited liability to its owners. Unlike a Corporation, however, an LLC is taxed as a Partnership or Sole Proprietorship (unless the LLC elects to be taxed as a Corporation). This allows an LLC to pass all its income and losses through to the owners. Furthermore, the LLC has an advantage over a C-Corporation which makes an S-Corporation tax election because the S-Corporation can only have 100 stockholders and the stockholders cannot be Corporations or non-U.S.

Is it okay for someone to open office mail that is addressed to you but also has the company name on it as well?

It depends how it's been addressed.

If it's marked 'confidential' or 'personal' or 'FAO' (for attention of' a named person), it should only be opened by that person or their representative (a secretary can open such mail for their boss for example).

No-one legally has any right to open mail (internal or otherwise) addressed to an individual without their prior consent. HOWEVER - in large offices, it's often company practice to open (but not read) all incoming mail before distribution within the building.

Under what circumstances a court may hold shareholders liable for debt of a corporation?

When they personally guarantee corporate obligations or the corporate veil is pierced as a result of the shareholders failing to recognize corporate formalities and treat corporate assets as their own.

Can a minor be a partner in a partnership?

In some countries, cultures and/or religions, minors are permitted to enter relationships, and in some cultures, countries or religions, minors (especially girls) are forced in to marriage at a very young age.

Make the sentence of incorporate?

The hotel will incorporate dancing as part of the nightly entertainment

What are the policies procedures systems and values of your organisation that are relevant to your role?

The Project Management Institute has policies, procedures, systems and values that are relevant to my role at work. There have written procedures to follow for the project management position.

What is a hollow corporation?

In my U.S. database there are 1,076 firms, or 43% of the total, that spend more money on "Transaction Costs" plus "R&D Expenses" than on the "Costs of Goods". The large share of corporate expenditures for the information "overhead" actually understates the leverage that the costs of information activities have on the economics of firms. One must recognize that the numbers recorded by the accountants as "Cost of Goods" include a very large share of costs incurred by suppliers who have already added the costs of their own information to the prices they charge.

Of particular interest are then "hollow" firms that are largely organized around the management of their transaction costs and R&D expenses while incurring hardly any of their own costs for the goods sold. These are firms that depend on outsourcing, or, on production of products with high intellectual worth.

In my next e-book I will be listing of firms with the highest ranked information intensity ratios while showing a very low ratio of value-added to revenue.

Value-Added and Outsourcing

The driver of efficiency in the industrial age was the concept of vertical integration of production processes. Managerial efforts were concentrated on intra-firm coordination. The objective was to extract maximum profits through self-sufficiency that avoids yielding profits to others. Emphasis was placed on streamlining internal administrative processes with a corporation.

Improvements in communications and computer-mediated coordination have change the bias that favored intra-firm ownership of the means of production. Extra-firm coordination can now take advantage of favorable subcontractor prices without sacrificing responsiveness or quality. These development have given rise to the concept of the "hollow corporation" wherein the production of all goods and services have been outsourced to suppliers. The only remaining corporate functions would then consist of planning, coordination and administration which are pure information management functions.

The extent to which a corporation is "hollow" is not revealed in current financial reports. It would require a different financial statement to reveal a firm's dependency on outside suppliers.

The value of "Purchases" can be calculated by subtracting "Value-Added" from "Sales" where "Value-Added" is defined as:

Value-Added = Labor & Related Expense + Depreciation +

+ Interest Expense + Non-Operating Income + Taxes + Net Income

It then follows that:

Purchases = Sales - Value-Added

The "Outsourcing Ratio" indicator is then:

Outsourcing Ratio = Purchases / Sales

By such analysis we can then calculate tables of Outsourcing Ratios for competitors and start an examination of the competitive significance for firms that operate with an increased dependency on effective coordination with suppliers.

A wide range of Value-Added comparisons can be constructed to gain a better appreciation of the structure and effectiveness of firms where the information workforce makes up most of the employment and where physical assets or the expenses for materials are lesser contributors to overall costs. My favorite Value-Added ratio is the Labor Surplus per Employee, which equals:

Labor Surplus = (Value-Added - Avg. Compensation) / Employee

It is noteworthy that the firms with the lowest outsourcing ratios tend also to show the highest labor surplus ratio while the firms with the lowest creation of labor surplus show the highest two outsourcing ratios. Such an observation may then lead us to explore further a hypothesis that outsourcing may not necessarily favor the creation of surplus in firms that are highly information (and R&D) intensive.

Value-Added analysis can lead us to contrary conclusions than revenue-related ratios based on generally accepted financial statements. Corporate management has a tendency to understate the magnitude of corporate overhead costs. This is usually done by showing that the ratio of SG&A or R&D has remained relatively constant with increases in revenues. Since accounting reports do not reveal the amounts of outsourcing a constant revenue-based overhead ratio can actually hide a growth in overhead expenses relatively to the size of the organization.