A form of Business Organization
I will use partnership form of business organization to for the solar panel manufacturing and installation company, Solar Co. the partnership form of business entity is advantageous as compared to other forms. First, the formation of a partnership is easy as compared to the formation of limited companies (Hillman & Loewenstein, n.d.). The partners in the business will be able to share the profits and the risks that may result in the cause of carrying the business. Hence, an individual will not incur the losses alone. The business partners can share their skills and knowledge when solving problems since the members have different technical capabilities and hence they will help the business to succeed. In addition, it will be easy to raise funds for the business through contributions from the business partners which will enable the business to run smoothly. Lastly, if one of the partners leaves the organization or is absent, the activities of the partnership will continue as usual since the other partners will carry the business.
Risks and Issues in the Solar Industry and Business
There are various risks and issues in the solar industry and business that has influenced my decision to choose the partnership form of business organization. First, there are company risks that affect the project viability like personnel, technical ability, and the limited finances that are vital for the company to carry out the business. The partnership form of business will help in solving the issue since the members will each contribute financial resource and technical skills to support the execution of the business project (Hillman & Loewenstein, n.d.). The other risk is the damage or theft of the solar equipment. The partner will be able to share the losses together, and thus it is the best form of business to invest.
Legal Liabilities of Directors
Directors of a company are not liable individually for the obligations, debts, and the liabilities of an entity. The directors and other officials are only liable to the obligations, debts, and the liabilities that arise due to fraud, breach of their fiduciary duty or through negligence on the part of the specific director (Duties and liabilities of directors of national banks, 2013). In addition, the director can also be held liable by undertaking an action that he has no authority and when the corporation does not ratify an individual.
The directors have a liability to shareholders and the company (Duties and liabilities of directors of national banks, 2013). The directors are held liable for negligent acts or by giving negligent advice to the shareholders which lead to loss of the assets of the company affecting the market value of the company's shares. The directors are also liable to third parties by their acts in their acts of tort-like making negligent statements about the clients of the company making the third party suffer from losses due to reliance from statements made by the director.
Minimizing Liabilities of Directors
The liabilities of the directors can be minimized by applying high levels of care. The directors should be aware of the risks that are associated with the decision they make regarding the public offerings of the company. The directors should also ensure that they do not make statements of negligent which may affect other parties.
To minimize the liability, the directors have to look for independent advice on the policies of the company and ensure that their interests do not coincide with those of the company director (Duties and liabilities of directors of national banks, 2013). There are laws which protect the directors who act in good faith within their authority so long as they do not engage in criminal and negligent activities which can affect the company.
The Corporate Structure of Amazon
In analyzing the structure of Amazon, the e-commerce entities combine the organizational flexibility and adaptability. In the case of Amazon, the organization has a multi-channel with an increased offline distribution and commercial activities. The company sells its products through chain stores such as office depot and Target. The online bookstores of Amazon increase daily increasing the size of the organization penetrating into different markets. Thus, the company requires structures that are flexible and effective leaders who can make decisions with the changes in technology (Rossman, 2017). The company uses multidivisional structures whereby all the units operate as separate businesses. The structures enable the Amazon Company to serve customers effectively.
The corporate governance structure of the Amazon comprises the board of directors, shareholders, managers, and the investors. The governance personnel is tasked with various responsibilities which are meant to ensure that all the governance practicing codes and guidelines are followed to protect the company from collapsing.
The Corporate Structure of the Coca-Cola Company
The Coca-Cola Company aims at leading as an example from experience. The company sets high standards for the people in the company so that they all strive to meet them. The business principles set by the company enhance accountability, transparency and ethical behavior (Roberts, 2013). The corporate governance principles promote the interests of the shareholders, ensures that the management is accountable for their deeds, building trust to the public, and strengthening the board.
The corporate structure of Coca-Cola Company comprises of the board, and the owners have a responsibility of electing them to oversee the activities of the company. The directors provide guidelines on corporate governance for the effective management of the company. The corporate governance materials of Coca-Cola comprise of guidelines on corporate governance, charters for the board committee, the business code of conduct of the company, and policies on public engagement.
[The Office]. (2013). Duties and liabilities of directors of national banks. [Washington, D.C.].
Hillman, R., & Loewenstein, M. Research handbook on partnerships, LLCs and alternative forms of business organizations.
Roberts, I. (2013). Corporate capture and Coca-Cola. The Lancet, 372(9654), 1934-1935. doi: 10.1016/s0140-6736(08)61825-5
Rossman, J. (2017). The Amazon Way: 14 Leadership Principles behind the World's Most Disruptive Company. SDMIMD Journal of Management, 8(1), 95. doi: 10.18311/sdmimd/2017/15723
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