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Advantages and Disadvantages of a Corporation

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Advantages and Disadvantages of a Corporation

A corporation is a company recognized by the State as a government body that differentiates itself from its proprietors. An organization may be owned by individuals or other entities, and ownership is easily transferable through the purchase and sale of shares. Since a corporation has it’s own limited company, it may access arbitration on its own, safeguarding its owners from personal liability. We discuss advantages and disadvantages of a corporation in detail.

As advised by llcguys.com – “since a corporation has it’s own limited company, it may access arbitration on its own, safeguarding its owners from personal liability.

A corporation is a legal entity that is distinct and separate from its owner and monitor web activity. Corporations enjoy most of the rising responsibilities that individuals possess. The corporation has the right to lend and borrow money, enter contracts, hire employees, and own property. The corporation advantages and disadvantages should be considered before you incorporate your business. 

How Corporation Work:

A corporation is a completely separate limited liability company, providing the safeguards of liability for the personal assets of each owner. corporations can conduct thorough any business venture as well as the activities needed to undertake the business, such as entering into agreements, owning investments, borrowing the money, employing people, attempting to sue, and getting sued.

Corporation Working Bodies:

Each shareholder normally receives one vote per share in the election of the directors. The Board of Directors oversees and often hires a management team to manage the day-to-day operations of the corporation. In general, each owner of the corporation owns a percentage of the corporation based on the number of shares held by the corporation. Since the shares of a corporation are easy to buy or sell, the ownership of a corporation is easy.

Types of Corporation:

There are many categories of corporations, such as C corporations, S corporations, B corporations, closed corporations and non-profit corporations. Every one has its own advantages and disadvantages. Some alternative solutions to corporations include limited partnerships, joint ventures, LLCs and cooperatives.

Advantages and Disadvantages of a Corporation:

Advantages of a corporation:

There are so many benefits to form a corporation, including small liability protection, easy financial transaction, continuity planning, better access to resources and (depending on the corporate structure) infrequent tax advantages. The legal entity of your corporation and the advantages you start receiving from it will vary depending on the specific nature of your business.

  • More money for investment

To raise money, a corporation sells ownership (stock) to anyone interested, or a corporation can also raise money.

  • Build Credibility

The more stable form of business organization is corporate form than other forms of business organization. Additionally, when you build-up a corporation, you can engage top talent in the market to spread your business instantly. Thus, a corporation transfers your business’s credibility to suppliers; clients are other stakeholders of the business. 

  • Limited liability

Limited liability means that the business owners are responsible for losses only up to the amount they invest. Suppose the company goes ruined or no money has left to pay back the lenders or creditors. In that case, the money which the shareholders invested into the company will be utilized to pay back the lenders and creditors. Thus, the shareholders will lose the amount they invested. Lenders and creditors, although, have no claim on the assets and personal properties of the owners.

  • Separate Entity

Corporations are also examined as separate entities from their shareholders. It’s the primary reason why corporations are limited liability. But, that is not the only advantage of being a separate entity.

  • Protection of personal financial loss:

A corporation provides its owners with more personal asset liability protection than any other type of entity. For instance, if a company is sued, the shareholders are not personally liable for debts and obligations or legal obligations – even if the corporation does not have enough extra income in the investments to be repaid. Protection of personal liability is one of the main reasons for this.

  • Security and existence of business:

Corporation possession is premised on a shareholding percentage that provides much more adaptability than other types of entities in terms of taking property and reinforcing the business over the long term.

  • Access of investment:

Since most corporations sell possession through publicly listed shares, they can possibly increase money by selling their shares. This access to money is a privilege that other types of entities do not have. It’s great not only for growing the company, but also for rescuing a corporation from losing money in times of need.

  • Tax advantages: 

Though other corporations (C corporations) are liable to tax, other large corporations (S corporations) have tax benefits depending on how their resources are distributed.

  • Size

Corporation has the size and resources to take advantage of opportunities anywhere in the world.

Disadvantages of a Corporation:

A corporation may not be for everyone, and it could eventually cost you more money and time than it’s good enough to justify. Before you become a corporation, you ought to be aware of the possible drawbacks: There is a long and complex approval process, you should first pursue rigid procedures and processes, it can be costly, and you may be counted heavily depending on corporation structure.

  • Double taxation

As mentioned above, corporations are separate entities, as it may be advantageous for several reasons. It also means that a corporation, as a separate entity, will be required to pay its taxes. When a corporation is taxed, it can give out any earnings to its shareholders in dividends.

For each shareholder, these dividends are then taxed again. It means earnings made by shareholders through corporations are based on double taxation.

  • long and complex approval process:

The overall process of integration is mostly a lengthy . You would have to go through lengthy documentation to properly identify and report the features of the organisation and its possession.You need to draught and maintain corporate by-laws, appoint a board of directors, enter into an agreement to change the ownership of shareholders, issue stock certificates etc.

  • Rigid procedures and processes:

Along with the long and complex application process, there is the amount of time and energy necessary to actually maintain a corporation and adhere to the rules. You need to know a bunch of niceties and heavy legislation to sustain your corporate status. For example, you ought to pursue your by-laws, sustain a board members, hold monthly conference, keep a board members’ minutes and draw up annual reports.

  • Cost-effective:

Corporations are expensive to build and start operating. It may be easy for established corporations to start raising capital through the sale, but it may be expensive to establish and maintain a corporation. You will likely need to have a lot of start-up capital to run a corporation, in addition to paying filing fees, ongoing fees and higher taxes.

  • Independent management

Suppose there are plenty of investors having no apparent majority interests. In that case, the management team of a corporation can set off the business without any real oversight from the owners.

Let’s have a quick overview of the pros and cons of the corporation:

Advantages of corporation Disadvantages of corporation
  • Limited liability
  • More money for investment
  • Size
  • Perpetual life
  • Ease of drawing talented employee
  • Ease of ownership change
  • Separation of ownership
  • Extensive paperwork
  • Two tax return
  • Lengthy application process
  • Independent management
  • Initial cost
  • Conflict with stockholder and board
  • Termination difficult

Conclusion:

Corporations are among the most developed aspects of business. They differ in many respects from relatively small types of enterprises, such as sole proprietorships. As a type of business, there are many advantages and disadvantages of a corporation.

The advantages are small liability protection, easy financial transaction, continuity planning, better access to resources and (depending on the corporate structure) infrequent tax advantages and the disadvantages are long approval process, rigid paper work and cost effective.

Read more about : Advantages and Disadvantages of E-Commerce in Points

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Business

Does iPhone Insurance cover stolen phones?

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Does iPhone Insurance cover stolen phones?

In all likelihood, purchasing phone insurance is at the bottom of your to-do list. After all, you’re not the kind to have your iPhone stolen. However, all it takes is one theft to make you wish you had proper insurance.

There are several factors to consider when deciding whether or not to get iPhone insurance. Is it prudent to protect one’s investment in a smartphone against the possibility of a cracked screen by purchasing insurance? When it comes to water, what are your plans? Which option is best for you, though?

Having iPhone insurance:

No matter whatever iPhone model you have, the notion of being without it for any time might be upsetting. Your iPhone is more than just a phone; it is an integral element of your daily routine. Most breakdowns happen outside the typical warranty term. leaving you responsible for the high expense of repairs.

Get your iPhone Insurance before it’s too late and get financial coverage against breakdown, damage, and more.

What exactly is phone insurance?

You may get iPhone insurance in various packages, including those designed for renters and homeowners.

Damaged, stolen, or lost iPhones are generally covered by iPhone insurance. However, the terms of your policy will determine what is and is not covered.

Do homeowners’ or renters’ insurance cover phones?

Few individuals know that renters’ and homeowners’ insurance may help pay for a replacement phone if it is stolen or damaged. Such plans often automatically cover theft, vandalism, fire, and other disasters.

Therefore, your house or renters insurance will compensate you if your brand new phone is stolen from you when you are out enjoying at a party or being picked pocketed in a foreign country.

Always try to cover your kitchen appliances with appliance insurance plans to face such emergencies in case of electrical/mechanical or accidental breakdown.

Mobile iPhone insurance vs renters insurance:

There are separate insurance policies designed to protect your phone in addition to your standard house or renter’s policy. For example, you may get some from your phone’s manufacturer, such as Apple and others from your service provider, like AT&T, Verizon, etc.

Compare the coverage provided by these plans to that provided by a standard renters or homeowners insurance policy, and you’ll notice a few key differences.

One key difference between these plans and renters insurance is that the former covers accidental damage such as shattered screens or spilt liquids while the latter does not.

Theft protection for your iPhone or Android is not included in the standard plan from shops like AppleCare+, but it is covered by renters’ or homeowners’ insurance.

Nevertheless, certain insurance policies offered by retailers or carriers may shield your phone against unintentional loss or theft. Get more information about the coverage you have.

How else does cell phone protection work?

In addition to your phone, additional devices may be covered by the insurance offered by your phone’s manufacturer or carrier. That’s why “Phone & Device Insurance” is a common term for this kind of protection in the business world.

Other electronic devices that may qualify for insurance are:

  • Desktop/laptop computers
  • iPads, other tablets, and e-readers (like Kindles)
  • MP3 players and iPods
  • Video game consoles
  • Cameras

What kind of cell phone protection package is recommended?

Your budget, use patterns, and willingness to make an up-front purchase of a new device should all be considered while deciding on a plan. If you have a history of misfortune with your phone, it’s probably a good idea to get both renter’s or homeowners insurance and a policy from your carrier or shop that covers damage to or loss of your phone. You decide.

It costs more to replace a stolen smartphone than to mend a broken screen on the same device.

What is Covered?

  • Unintentional Damage
  • Theft
  • Breakdown
  • Water Damage
  • Fixing or Replacing
  • Protected for up to 90 days, wherever you may be.

What is not Covered?

The Unintentional Loss of Electronic Monitoring Equipment

If you lose your mobile phone and don’t report it to your airtime provider within 12 hours, they won’t replace it unless you pay a replacement fee.

Tech Products or Cell Phones Bought Via Online Auctions

If you suffer a loss, report it to the police within 24 hours and get a loss report number.

Defects in Appearance Only, Not in Function

Cases when neither proof of purchase nor proof of ownership is readily available.

How about accidental damage coverage?

You will be covered for any unintentional damage to the Gadgets you insure will be covered and, if necessary, replace them if they can’t be fixed.

How old must my products be?

As of the policy’s effective date, the device must have been acquired from the maker or network provider and not be older than 18 months.

If my gadgets go missing, what do I do?

Should any of your electrical devices go missing, be assured that they will reimburse you. If just a fraction of your electronic gear were taken, you would only be compensated for the amount taken.

Where do I stand concerning a cancellation?

If you determine that this policy does not fulfil your insurance requirements within 14 days of purchase or receipt of your policy papers, you may request a full refund of your premium. If no claims have been filed or processed, your premium will be refunded. After that, you’re free to revoke coverage whenever you choose, but you won’t get your payment back.

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What characteristics make a company ethical?

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What characteristics make a company ethical?

Today, most businesses are profit-driven. They focus on earning as much as possible with little regard for how their decisions affect the environment, employees, and community. Fortunately, these businesses can be ethical and successful at the same time despite there being a thin line between the two choices.

So what does an ethical company look like? With these five characteristics, you can build an ethical business and fully realize your endeavor without sacrificing one in favor of the other.  Keep reading!

1. Integrity

Business integrity entails acting in honor, whether in a public or an office setting. It’s doing everything right to keep the reputation of the company intact. Some integrity practices include implementing mechanisms to conduct a thorough and transparent investigation when employees report it.

Offering the same punishment to the managers and front-line employees for the same mistake. It also demonstrates integrity when the top management encourages employees to be creative and work hard rather than meet certain quotas or close a deal, no matter the cost.

2. A Set Of Core Values

Each business has its core values or principles that guide its actions. These values, vision statements, and mission are integrated into every area of the business, and when implemented to the core, they drive a brand to the top.

An ethical company clearly outlines these principles and ensures each member can access them. The top management uses the values to measure how other business activities align with them. They also live by them and set a good example for the employees.

3. Safe Working Environment

An ethical company puts its employee safety above everything else. They understand that the employees are the force behind high-profit margins and brand growth; hence, all measures to ensure workplace safety are guaranteed.

They develop preventive measures to reduce workplace injuries and prompt response mechanisms in case of an injury. They also conduct regular training to sensitize employees to adhere to safety measures.

4. Respect For Employees And Customers

Without a doubt, a business cannot be where it is today without the help of employees and customers. These two groups of people deserve recognition and respect. An ethical business treats its employees respectfully and equally regardless of rank.

It also ensures employees’ health and safety in the workplace are looked after. On the part of customers, an ethical company shows respect by listening to their complaints or comments and solving them to their satisfaction. It also introduces environmental practices and social activities to improve the community’s well-being.

5. Concern For The People And The Environment

An ethical business shows concern for every person or anything impacted by its operations. Whether it’s the employees, customers, investors, stakeholders, community, or the environment, they ensure every decision does not negatively affect any of these groups.

They also develop programs aimed at improving the well-being of the community and environment. For instance, they plant trees, conduct clean-up exercises, and help the less fortunate in the community.

How An Ethical Business Looks Like

An ethical business has integrity and operates within set core values. It also develops a safe working environment, shows respect to the customers and employees, and genuinely cares for the people and the environment. Review the above features to find the right company for your investment.

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Business

Floor-Length Evening Gowns – Feel Like A Queen!

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The feast atmosphere, sophistication, and natural beauty are combined with floor-length evening gowns. This eternal classic is ideal for a hot day and a fantastic evening. Do you want the most vivid emotions? Then it’s time to venture into a tremendous fashion experiment and choose your ideal evening dress on https://itsmilla.com/collections/evening-dresses.

What Are the Trendiest Colors for Evening Gowns?

Shades and colors allow us to look our best. It is enough to choose the floor-length evening dresses color correctly, and the outfit will look truly royal.

First of all, consider your color type:

  • A floor-length black evening dress is recommended for “Winter” ladies. Your black hair and blue or brown eyes will look stunning in black.
  • Red womens formal dresses are an excellent option for the “Autumn” woman. A charming owner of light skin and freckles, with red or brown hair, will involuntarily attract the attention of others in a red outfit.
  • A white dress looks good on brown-haired, brunette, and dark-skinned girls. The shade of your white dress should match the color of your skin.
  • Blue looks perfect on blondes and brunettes. If you are lucky to have a “Summer” color type, pay attention to the light blue palette.
  • Green is ideal for representatives of the “Autumn” color type. A spectacular evening dress in olive muted green blooms on red-haired girls with light skin.

There are better options than dull, faded shades for formal evening dresses. When choosing an outfit for a celebration, choose complex saturated colors. After all, beauty is different: an incorrectly chosen tone, even of an ideal style, can shade the color of the face and eyes. Having made the right choice, you will conquer others with a brilliant appearance and feel more confident.

How to Buy Long Evening Gowns and Not Miss the Size?

It is convenient to choose clothes in Milla Dresses online stores, but how to choose a dress that fits your figure perfectly without trying it on? It would seem that everything is straightforward – The Milla shop offers a size-matching table. But, women often feel confused and make a fast choice without considering the specifics of a specific dress model.

To choose the right clothes online, it is best to contact specialists. All you need is to measure your parameters. Online store consultants work with real-life models, so they know how they fit the figure well. It will help you decide on a style and the optimal size. Shipping through the USA and worldwide is available.

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