Your name

Yourname

Coursename

Therearedifferentformsofbusinessesnamelysoleproprietorship,partnership,andcorporationsintheworld.Acorporationisalsoreferredtoascompanyoralimitedcompany.Inthe1870s,individualsorgroupofpeopleranmostbusinessesinAmerica.However,aroundthe19thcentury,therewasalotofrevolutioninAmerica,fromthetimeofcivilwartothepresent,concerningthewaypeoplemanageandruntheirbusinesses.Thiswasinformofcorporations.CorporationsbecameAmerica’seconomickeyinstitutionsthatcontributedintherapiddevelopmentofthecountry.Theybroughtalotofchangesandbenefitstothepeopleofthecountryasawhole.Therearedifferentreasonsthatledtotheformationofcorporations,whichbroughtaboutseveraladvantages,disadvantages,andimpactonthedemocraticsocietyofUnitedStatesofAmerica.

TheEmergenceofModernCorporations

ThereweredifferentreasonsthatleadtotheformationofModernCorporation.Inthe1870s,individualsoragroupofpeoplefinancedmanybusinessesassoleproprietorsorpartnerships.Therefore,prosperitywasonlyforthefew.Inaddition,iftheindividualwasunabletopayadebt,itwastransferabletotheotherfamilymembersorrelatives.Toaddoninworsecasesitledtotheimprisonmentofrelativesorfamilymembers,onbehalfoftheaccusedindividualwhofailedtopaythedebt.Peoplefearedtoinvestinthisbusinessbecausetheshareswerenottransferableoutsidetothepublicthustherewerestrictrulesonceapersonjoined.However,inthelastyearsofthe19thcenturythereweremajortransformationsontheoperationsandstructuresofbusinessesinAmerica.Therewastheneedofbusinessesthatwereindependentandthemembersormanagementwasnotliabletoitsdebt.ThefirstreasonfortheintroductionofModernCorporationisthatsamepeoplemanagedandownedtheearlybusinesses.TheyonlyemployedafewpeoplebuttheownersthemselveswereinchargeofoverseeingalltheoperationsofthebusinessHowever,theformationofModernCorporationledtobusinessmanagementdonebyqualifiedprofessional(Williamson,1538).

Secondly,whentheearlierbusinessdesiredtoopenabranchthepreferredcandidatewasarelativetorunit.Thiswasforthepurposeofhonestyinadistantbranch.However,asbigbusinesscontinuedtogrowtherewasneedfortheuseofbureaucratichierarchies.Thiswasbecausethesuccessofthebusinessreliedonacentralizedcoordination.Tobeabletoachievethesebigbusinessesformedformaladministrativebusinessstructures.Therewastheestablishmentofdifferentmanageriallevels.Therewasalsothecreationofunderstandableoutlinedauthorities.Therewasformaluseofrulestoassistinthegovernanceofthecorporationoperations.Thesehelpedinthecreationof“middleclass”levelforcorporation’swhite-collaremployees,thiswasdifferentfromthetraditionmiddleclasslevelthatinvolvedindependentprofessionals,farmers,andshopkeepers(Williamson,1539).

Thirdly,theearlierbusinessesmostoftheirbusinesstransactionsweredonewithinonelocalityforexampleatown,andfromasinglefactoryoroffice.Therefore,mostofthepeopleofthattownweretheirmaincustomers.However,therewasneedforgrowthofbusinessestootherlocalitieshencetheformationofnewcorporationbusinessingeographicalscaleandsize.Thismeantthattheretransactionswerescatteredwidelyindifferentlocations.Fourthly,theearlybusinessesspecializedinasinglekindofbusinessoperationsforexampleifsomeonewasamerchant,manufacturerorwholesalertheywouldonlyhandlethatparticularfieldorproductthattheyhave.However,withtheintroductionoftheModernCorporationbusinesseswereinvolvedinseveralkindsofbusinessoperations.Forexample,theoperationsofaUSAsteelcompanywasminingfromthegroundtheironore,thentakeittoitsownmill,processittosteel,thentoanydesiredfinishedproduct,andthentransportthefinishedproductstowholesalers.

AdvantagesandDisadvantagesofCorporation

Oneoftheadvantagesofusingacorporationtoyourbusinessisthatitislimitedliability.Thatistheshareholdersorownersofthebusinessarenotlegallyresponsibleforthedebtsofacorporation.Thismeansthatifthecompanyisunabletopayitscreditors,thecreditorshavenorighttodemandpaymentfromtheownersorshareholders.Secondly,theownershipofacorporationiseasilytransferable.Thisisthroughtransferringsharestothenewmemberofthecorporationandtherecordingthedetailsoftheperson.Inaddition,thecorporationcarriesoutsomelegalproceduresconcerningthetransfer(Grant, 925). Thirdly,acorporationhasperpetualexistence,inotherwordsalegalentitythatisseparatefromitsownersandshareholders.Therefore,incaseofdeathorchangesintheownershipofthecorporation,thisdoesnotaffectthecorporationasithasthelegalrighttocontinueasabusiness.Fourthly,thecorporationhassomeaddedadvantageconcerningtaxationcomparedtootherformsofbusiness.Thisisbecauseifthebusinessissmallthathasqualifiedasacorporationanditsincomeisactive.Itisabletotaketheadvantageofreductionsmadetosmallbusinessesandpayreducedratesonincometaxonitsproducts.Fifthly,itiseasierforacorporationtoraisecapitalcomparedtotheotherformsofbusiness,thisisbecauseoftheuseofsellingsharetothemarket.Lastly,itiseasierforacorporationtobelentmoneybydifferentorganizationscomparedtootherformsofbusinessesbecauseofitslegalstructuresandhowtheyoperate.

Thereareseveraldisadvantagesofconductingabusinessasacorporation.Thereisnoprivacyinacorporationconcerningpersonalinformation.Thisisbecausethecooperationisrequiredtokeeprecordsofitsdirectors,shareholders,andofficerspublic.Inaddition,thecorporationisforcedtomakesomeoftherecordsoftheshareholders,owners,andthedirectorsopenforinspection.Inaddition,anyonecanfreelyaccessthedetailsofthedirectorsofanycorporationwithease.Secondly,thereisapossibilityofdoubletaxation.Thisisduetothecorporationrequirementtopayfortaxontheprofitithasmadeduringthefinancialyear.Inaddition,thereshareholdersareoftenaskedtopaytaxfortheprofittheyhavereceivedfromthecorporation(Grant,927).Thirdly,despitethefactthattheshareholdersandthedirectorshavealimitedliabilitytothecorporation,thereareinstanceswherebytheyareheldpersonallyliablefortheresponsibilityofcertainfailuresoractsofthecorporation.Thisisbecauseofthecreationofsomelawsthatmadetheshareholdersanddirectorstobepersonallyliabletothecorporation.Inaddition,thereareoffenses thattheshareholderorthedirectorscandoorfailtodothatcanmakethemtobepersonallyliabletothecorporationandthelaw.Fourthly,itisexpensivetostartacorporationcomparedtoapartnershiporasoleproprietorbusiness.Thisisbecauseoftheextrachargesthatarerequiredbythegovernmentandtheinvolvementoflegalcharges.Inaddition,therearemoreexpensesinvolvedinorganizingacorporationcomparedtootherformsofbusiness.Lastly,corporationsaresubjectedtomoreregulationscomparedtootherformsofbusinessthatwillincreasethecostforthebusiness,forexample,whensellingsharesorraisingcapital.

TheMajorEffectsoftheFormationofModernCooperation

ThisbroughtaboutalotofchangeintheAmericaseconomy.Thisisbecauseafteraperiodwhereby thenationhadbeenmarkedwithhighratesofbusinessfailuresandhighlevelsofunemploymenttransformationinthebusinesssectortookplace,therewasachange,which broughtaboutlargeprofitablebusinessunits.However,itisimportanttonotethattheriseofnewcorporationwasnoteasy.Thiswasbecausemanyfactorieshadpoorworkingconditions,laborconflictsweresosevere,manybusinesseswereblamedofstockwatering,fixingprices,theytriedtocontroltrade,andmanymoreabuses.Intheend,theabusesbythedifferentcompaniesledtopoliticalreactions.Tosolvetheproblemofpowerbythecorporation,thenationalgovernmentintroducednewformsofrulestowardstheendofthe19thcenturyandbeginningofthe20thcentury.Forinstance,thegovernmentemphasizedontheconditionsandworkingstandardsthatthecorporationsrequirewhile operating,environmentalandemploymentlaws,legislation concerninganti–trust,financialstandards,safetyandproductqualityregulationsjusttomentionbutafew(Gilson,349).Thishelpedinregulatingpricesandevenprotectingtheemployeesandshareholdersofthecompany.TheintroductionofModernCorporationhasbeenabletoseparatetheownershipofthebusinessfromthemanagementtotheshareholdersthroughthesellingofshares.EarlierinAmerica,theshareholdersdidnothaveasayintheactivitiesofthecorporation.Howevernowadaystheyhavealimitedresponsibilityofvotinginthepanelofdirectors(Fisch,637).

TheotherimpactthattheformationofModernCorporationhasisthattheowners,shareholders,andofficersofthecorporationarenotallowedtopayforthecorporation’sdebt.Thisisbecausethecorporationisalimitedliabilityandtheyareonlyliabletotheamountthattheyhaveinvested.Thiscreatedsecurityforitsmanagementandshareholders(Kaysen,312). Anotherimpactisthefactthatwhenapersonwantstoleavethecorporationtheycaneasilytransfertheirsharestoothermembersortheyselltoanewbuyeraslongerastheyfollowthelegalproceduresoftransferringshares.AnotherimpactoftheformationofModernCorporationisthatAmerican,asanationwasknowntobeasmallagrariansocietychangedtobethelargestintheworldandthemostsuperiorindustrializednation.Thiswasfacilitatedbytherapiddevelopmentofbusinessesinboth size and thegeographicallocations.Toaddon,beforeWorldWarIIAmericawasanagriculturalnation.Therefore,individualsreliedonlandassecuritytohelpthemtakecareoftheirfamiliesandworkersneedssuchasoldageandillnesses.However,sinceWorldWarIItodate,duetothedifferentchangesintheAmericaneconomy,theynolongerreliesonagriculturetotally,buthaveevolvedtobeanindustrializednation(Kaysen,314).ThereforeAmericancorporations’areresponsiblefortheinsuranceoftheunemployed,theycontributetothesocialsecurityofworkers,andareinvolvedinthecompensationofworkersduetoinjuryatwork.Inadditionsincecorporationscompetewitheachothertoretainandrecruitemployeestheyofferothervarietiesofemploymentbenefitsthemostimportantonebeinghealthinsurancebenefitandretirementbenefit.However,itisimportanttonotethatthesebenefitsareassociatedwiththeamendedactof1935onsocialsecurity.Inaddition,thebenefitsareissuesdiscussedbetweentheemployeeandtheemployer,thereforetheyvarydependingwiththeemployerandgeographicalarea.Lastly,industrializationoftheAmericaneconomyincreasedthedesireforlaborerswhowereskilled,thispromotedtheformationofunionsthatfightfortherightsofworkersinthenationbecauseofmanipulationsbythecorporations.FromaboveitisimportanttonotethattheintroductionofModernCorporationasaformofbusinesshasbroughtmanybenefitsbothtothecountryandtoindividuals.Theconversionofcorporationasalimitedliabilityentityhasmadeshareholdersnotfeartojoinbusinesses,astheyareawarethattheywouldnotbeliabletothedebtsofthecorporation.Duetocompetitionbetweenthecorporations,ithasalsobroughtaboutmanybenefitstothesocietytoimprovementinthejobemploymentarea,health,incomesecurityandmanymore.Corporationhavealsohelpedandfacilitatedcountrieseconomicprosperityinmanyways.Lastly,therearemanyadvantagesofopeningabusinessasacorporationcomparedtootherformsofbusinesses.However,peopleshouldseekforprofessionaladvicebeforeopening.

Workcited

Berle,Adolf Augustus, and Gardiner Gardiner Coit Means.&nbspThemodern corporation and private property.Transaction publishers, 1991.

Fisch,Jill E. &quotMeasuring efficiency in corporate law: The role ofshareholder primacy.&quot&nbspJ.Corp. L.&nbsp31(2005): 637.

VAROTTIL,UMAKANTH.&nbspCorporateGovernance in Emerging Economies: Role of the Independent Director.Diss. NATIONAL UNIVERSITY OF SINGAPORE, 2009.

Gilson,Ronald J. &quotGlobalizing corporate governance: Convergence of formor function.&quot&nbspTheAmerican Journal of Comparative Law&nbsp(2001):329-357.

Williamson,Oliver E. &quotThe modern corporation: origins, evolution,attributes.&quotJournalof economic literature&nbsp(1981):1537-1568.

Smythe,Donald J. &quotThe Rise of the Corporation, the Birth of PublicRelations, and the Foundations of Modern Political Economy.&quot&nbspWashburnLaw Journal50.3(2011).

Kaysen,Carl. &quotThe social significance of the modern corporation.&quot&nbspTheAmerican Economic Review&nbsp(1957):311-319.

Grant,Gerry H. &quotThe evolution of corporate governance and its impacton modern corporate America.&quot&nbspManagementDecision&nbsp41.9(2003): 923-934.

Nace,Ted.&nbspGangsof America: The Rise of Corporate Power and the Disabling ofDemocracy.San Francisco, Calif: Berrett-Koehler, 2003. Print.

Moye,John E.&nbspTheLaw of Business Organizations.Clifton Park, NY: Thomson/Delmar Learning, 2004. Print.

Your Name

Dialogue between Theodore Roosevelt and Woodrow Wilson

In the early 19th Century, the United States underwentvarious transitions in terms of foreign policy. Every individual whotook power had a different view and belief regarding foreign policy.It was commonly agreed among the people and the leaders as well thatthe US had a role to play in the peace of other nations and inassisting weaker and oppressed nations obtaining freedom. However,the different governors had different opinions on the possibility ofthe US becoming a superpower, the imperialist policy. For instance,Theodore Roosevelt believed that the United States needed to adoptthe imperialist policy in order to keep other nations from trying tochallenge the US military, a policy that his successor Woodrow Wilsoncould not agree with. Also, Roosevelt wanted the US to intervene inthe World War, but Woodrow was only dragged into it forcefully. Thisessay assumes that the two leaders had a chance to meet and discussthe issues and presents some of the things they could have said toeach other.

Roosevelt: I believe that America should expand its power abroad,should always be strong and ready whenever necessary to defend itsinterests all over the world. If we want other nations to respect usand refrain from any form of challenge directed to us, we must showthem the expanse of our power. Of course we should not go aroundbattling with nations, we should help them solve their problems butuse that as a platform to reveal to them how powerful we are. As Ialways say, speak softly and carry a big stick and you will go far.That is an African proverb I think should be heeded by all leaders,what do you think about that?

Wilson: I agree with you on the fact that we have a duty to assistother nations that are less powerful to solve their problems.However, I believe United States should refrain from imperialism.Every nation has a right to its own democracy. For instance, theUnited States can help Haiti solve their problem, but that does notcall for aggression.

Roosevelt: Good to know you agree with me on something, at leastthere is progress. The United States has a responsibility tointervene in the problems of other nations. But I still insist on mypoint, the interventions are our way of making it known to the worldthat we are strong and they should not even think about contendingwith us. Let me ask you a question. How would you solve the Haitiproblem for instance?

Wilson: I would send troops to Haiti to protect property and lives.After that, I would try to make an appeal to the Haiti government toconsider a treaty for the US to supervise their finances and policy.

Roosevelt: Great! You use troops, don’t you? What is that? Won’tyou be showing to the people and governments of that region that theUS is powerful? And in signing a treaty for the US to supervise thepolicies and finances of the Haitian government, won’t you beexpanding the territories of the US? In a way, you will beimplementing my dream for a prosperous America that is a super power.

Wilson: What? No! You know that is not true, I would never embellishmy morals in such a manner. The troops would just be sent to controlthe rowdy individuals with their silent presence, and the monitoringof the policies and finances would only help them to remainfinancially stable and with a stable policy. But I would never seekto take control or assume power over their government.

Roosevelt: You know what that is? The silent presence of the UStroops in Haiti to maintain order? The media have termed it “BigStick diplomacy”. Adopted from my favorite old African proverb. Ibelieve that only the threat of force, and not force itself, isenough to prevent any war. If the United States can only show itspower to the rest of the world, other nations will not even thinkabout challenging our military.

Wilson: As a scholar, I once learnt that the means does not matter asmuch as the intent. And that is where I think we differ. Yourintention for using force is to show the rest of the world how strongwe are and be able to expand the boundaries of the United States,however, I do not believe we should seek to turn the countries wehelp into our colonies. It is against moral justice.

Roosevelt: You are right there, the United States should not use itsposition as a powerful government to establish colonies. However, forthe United States to effectively manage the situations in the othernations, it must exercise some slight power over them. Take forinstance the case of Venezuela, driven into poverty by that Castro,until the country cannot pay its debts to European countries.Remember how Germany blockaded its ports in an attempt to force themto pay their debts. How would you intervene without using force toscare away the offender? I would help them to overcome their enemyand then, using a little power as a superior nation, I can help theminvest the little money they have so that they will be able to paytheir creditors in future without any scandals.

Wilson: Well, as for me, I can advocate for the signing of a peacetreaty between Venezuela and Germany. In that manner, they will learnto co-exist without any threats of future wars. I would support thegovernment of Venezuela to form a government of their own andformulate their own policies to help them maintain their owninfluences. Taking over the nation would only be hypocritical.Germany invaded Venezuela so as to control them, if you go in to helpVenezuela and then take control over them, you will be doingGermany’s bidding.

Roosevelt: You are totally wrong! Anyway, considering the impendingWorld War 1, do you think the United States should get involved inany way?

Wilson: Absolutely not! The United States has nothing to do with thewar and should stay clear of it. In as much as the United Stateshelps other countries with problems, the help should not extend to aglobal issue as large as the world war.

Roosevelt: Are you even listening to yourself my friend? It is aworld war! In a way or another every nation will have to feel itsinfluences. I believe strongly that the United States has aresponsibility to keep other countries at peace. The US can use ourvast military to help avoid any war. And in case the war commences,the United States must take a stand and fight along the offended andoppressed countries.

Wilson: Come on! How can you say that! Is it morally upright for theUnited States to make any judgements about the right and the wrongparty in the impending war? It is probably possible that you wouldonly end up siding with the nations that you are friendly with, andthat is prejudice.

Roosevelt: Isn’t it obvious who is wrong? Let me assure you thisthough, the war will happen sooner or later, and America will beright at the center of the war. I will fight the war with my ownhands, and my sons will fight too. Because I know I will be fightingfor a worthy course. The United States, being a superior power hasthe opportunity to take its rightful place at the top of all othernations, ruling and monitoring all of them and making the world aglobal government.

Wilson: Your choice worries me my friend. I believe that all nationsand all people want to be able to control their own destinies, andthey all deserve that opportunity. Getting involved in the World Warwill only lead to hindering the contending nations from definingtheir destinies and determining their futures. I believe that theUnited States can give guidance to nations that are trying to maketheir governments, like Mexico that has been trying to formulate andcreate a self-government. But the only help the United States canoffer them is that, through the US foreign policy, the US can helpthem improve their democratic ideals and institutions and become aself-governing. But the United States should not assume any powerpositions in such governments. I will stay away from the World War 1if it ever happens.

Roosevelt: Ha! Just say you fear the prospects. You think maybe theUnited States is not strong enough to engage in such a great war.But, trust me, I have been in the US army and I am well aware of thepower and expanse of the US army. Together with their advancedskills, the United States Army can take on any enemy and prosper.

Wilson: I see that you like war, it appears that nothing I say willkeep your mind off your dream for imperialism. As far as amconcerned, no nation should exercise authority over another forwhatever reason. Every country has a right to an opportunity to shapeits own future. In case the United States chooses to assist othernations, it should do so as a friendly nation but not as apatronizing one or one which seeks to establish an empire over them.The United States is a distinct country and should stay as such,secluded from the rest of the world. Spreading civilization to otherparts of the world is only but a social responsibility of the UnitedStates.

Roosevelt: That is just your opinion, but I believe you are wrong.The United States have an opportunity to advance its boundaries ofpower and become a super power. It can do so under the platforms ofensuring world peace, spreading civilizations and promoting financialdevelopment and reliability. It is possible to use a soft tone whileestablishing a legacy that will live forever.

Reference

Robinson, N. (2008).&nbspCompare and Contrast Theodore Roosevelt andWoodrow Wilson.&nbspEducation – Seattle PI. Retrieved 7 November2015, fromhttp://education.seattlepi.com/compare-contrast-theodore-roosevelt-woodrow-wilson-5540.html