Analysis General Motors and A Fourth-Generation Family Business

Paper Type:  Essay
Pages:  5
Wordcount:  1119 Words
Date:  2022-06-16

General Motors an "S" Corp or Not

General Motors is a C corp rather than an S corp. C corps pay taxes both on corporate income and when shareholders receive dividends. On the other hand, S corps are not taxed on corporate revenue but when shareholders receive dividends. In general, to be an S Corp you cannot have over one hundred shareholders particularly who are not of the diverse stock class or non-resident alien stockholders (Srivastava 811). Thus, since General Motors is a publicly traded with over one hundred stockholders one can be certain it is not an S Corp but a C corp.

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Liability of Partners in Partnership

In a business partnership, a partner liability differs depending on the type of partnership he or she is engaged. For instance, in general partnership, individuals always have an unlimited personal liability that its partners pay all business debts. In limited liability business, partner's liability is limited that is they can be sue only due to the total amount of business assets (Lewis 1017). In a limited partnership, partners are personally liable only if they are involved in the operation of the enterprise.

Merge between UAL and Continental Airlines

The UAL and Continental Airlines merge needed the approval of the offer provided by the UAL. The merge occurred because despite the UAL having strong route links as well as a client base, it did not have the potential to earn a sustainable profit (Wittman 65). The merger between the two airlines is not successful since they are wrestling with an upsurge in cancellations and maintenance-associated delays, poor punctuality, and unhappy unions. Many customers who use the airline have shown positive behavior and customer satisfaction reactions because of improved service quality.

Frozen Investment in the Economy

Constructing a housing to sell later for profit is a frozen investment. This is because the parties had a registered supervised house project that initially marketed on the basis that they had a periodic or current right to sell it upon their agreement (Aklilu et al. 44). However, because they have not decided to sell it, it is still a frozen investment in the economy. Thus, the house will remain as theirs until they agree to sell it to another individual.

Buying a Real Estate CO-OP

When individuals purchase a CO-OP, they are buying shares in a corporation. This is because the majority of the C0-OPs do not possess land where buildings are constructed (Qiao 255). However, they lease the land. Therefore, one is entitled to a leasehold interest since they do not own the buildings.

Board of Director Position in a Corporation

Members of the board of directors are not considered staffs of a corporation. This is because they offer insight over the corporation while employees execute the activities being overseen. According to BenAmar & McIlkenny (705), the board of directors is not considered as employees because they provide their services to keep the effective association between them and stakeholders, unlike employees who offer their services to keep their connection with a corporate. The board members are elected to act as stakeholders' representatives in making decisions on basic corporate issues hence they should not be viewed as employees of a corporate due to differences in roles between them and the staffs.

Berkshire Hathaway

It is a holding firm for various enterprises with headquarters situated in Omaha, Nebraska. It started diversifying into insurance in 1985 which conitunued up to date (Kim et al., 15). Berkshire Hathaway also performs crucial commerce via its re-insurance activities which offer safety against big insurance expenditures. Their core driving force is Warren Buffett, who is its CEO. He has ensured that the company is successful since, for instance, in August 2014, the company's stock price Class A stock exceeded $200,000 per share and made various invest investments such as acquiring precision Castparts.

Graeter's: A Fourth-Generation Family Business

Question One

It is essential for the Graeter's current team to have a succession plan in place because according to Hall-Ellis (95), the majority of the family enterprises always fail in their operations before handling the business to the third generation. This is because challenges experienced by second-generation varies significantly than those encountered by the first generation who in this case comprised the co-founders, Louis Charles Graeter and Regina. Therefore, it is helpful to have a successful strategy which articulates who should join the enterprise, the appropriate time, and their roles to avoid problems associated with areas in the business.

Question Two

The management team chose to hire consultants since Graeter's had significantly grown to the extent that the four cousins could not train their employees alone and because they needed experienced individuals in this sector. Additionally, they wished to pursue a nationwide distribution via a big network of supermarkets and grocery stores hence they required management consultants to help expand this distribution. The incorporation of the consultants has proven to be significant to Graeter's since the company has constructed a new facility that has improved the business' production ability and aided in hiring experienced executives who aid in managing their firm.

Question Three

While an individual considers various advantages of franchising, one can conclude that the Graeter's decision was a bad choice. Moreover, this is because franchisors offer the required training to run an enterprise and when they stopped franchising, they started hiring managerial consultants. The main aim of consultants was to aid in training procedures, but the company incurred costs on them which would have been used in other sectors. Additionally, the franchising enhanced easy supervision on Graeter's, but when they stopped it, they started experiencing management issues which brought the need for experienced executives to aid in the management of the expanded enterprise after franchising ceased.

Works Cited

Aklilu, Yacob, Et Al. "Market Access and Trade Issues Affecting the Drylands in the Horn of Africa: Brief Prepared by a Technical Consortium Hosted by CGIAR in Partnership with the FAO Investment Centre." (2013).

BenAmar, Walid, and Philip Mcilkenny. "Board Effectiveness and the Voluntary Disclosure of Climate Change Information." Business Strategy and the Environment 24.8 (2015): 704-719.

Hall-Ellis, Sylvia D. "Succession Planning and Staff Development-A Winning Combination." The Bottom Line 28.3 (2015): 95-98.

Kim, Dae-Hee, Lisa Spiller, and Matt Hettche. "Analyzing Media Types and Content Orientations in Facebook for Global Brands." Journal of Research in Interactive Marketing 9.1 (2015): 4-30.

Lewis, Winnifred A. "Waiving Fiduciary Duties in Delaware Limited Partnerships and Limited Liability Companies." Fordham L. Rev. 82 (2013): 1017.

Qiao, Shitong. "Planting Houses in Shenzhen: A Real Estate Market without Legal Titles 1." Canadian Journal of Law & Society/La Revue Canadienne Droit ET Societe 29.2 (2014): 253-272.

Srivastava, Kumar S. "Message Organization and Spam Filtering Based on User Interaction." U.S. Patent No. 8,725,811. 13 May 2014.

Wittman, Michael D. "Are Low-Cost Carrier Passengers Less Likely to Complain About Service Quality?" Journal of Air Transport Management 35 (2014): 64-71.

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Analysis General Motors and A Fourth-Generation Family Business. (2022, Jun 16). Retrieved from https://proessays.net/essays/analysis-general-motors-and-a-fourth-generation-family-business

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