Define each of the five business organizations?
The limited liability partnership is a company wherein two or more persons undertake to contribute to a common fund money or property and divide the profits among themselves. There is at least one limited partner and one general partner. A business may also be run by means of franchising which allows a business organization to transfer the rights and privileges of the business to another for a consideration. Such consideration is called franchise fee.
In case of joint venture, it is a business organization between two corporations where the participants deviate from traditional matters on corporate management in terms of voting, control and selection of employees, and arbitration proceedings. In case of license, the government will act upon any business application filed by a business organization or an individual and provide such license to enter into business endeavors. Lastly, for sole proprietorship, an individual chose to run the business on his own and without any help from other persons.
Week 2 Discussion Question 2 What legal and ethical issues must a business consider when deciding whether or not to do business globally? The ethical issues that a business organization must consider when deciding whether or not to do business globally are integrity of business endeavors, setting mission and vision properly and as well as propriety of core values. Doing business globally includes the adaptation of the culture, values, customs and economic conditions in other countries.
Hence, the business organization must see to it that the core values of the company are universal and ethical in nature. On the other hand, the legal issues that should be considered is about laws involved in having business outside the country and as well as treaties involved in the same. The laws of other countries will affect the success of the business done globally. Lastly, the issues on taxation must also be considered by the business organization doing business outside the country.