Business and Technology

Business and Technology

Introduction

United States business laws are designed to offer balance, fair and business practices that are competitive. In most cases, the business laws have been effective since they are designed with the input of the stakeholders. Business laws affect the running of businesses in the United States covering information on privacy laws to bankruptcy. Some of the common laws are business association laws, tax laws, securities regulation, intellectual property laws and corporate finance laws among others (Advani, 2011).

Surveys indicated that business association laws are in place to regulate the functioning, formation and demise of a business entity. Laws on business organizations in the United States focus at the companies that are publicly owned guiding them on the duties and the laws of company officers and directors and in setting the shareholder’s powers. Laws on business organizations also regulate limited liability, partnerships and companies that are closely held together.

Tax law focus at the regulations, rules and requirements needed by the federal Internal Revenue Code and the State Tax Codes. Businesses in the United States are expected to understand and follow the tax code in avoiding violations of the tax laws and failing to take advantage of ‘pass through tax’ benefits allowed to S-corporations. The company may also risk paying less corporate income tax (Nikbakht & Groppelli, 2012).

Securities Regulations considers securities and stocks, particularly on the models of management and issuance. Securities Regulation is accustomed to 1933 Securities Act that sets it clear on what organizations must observe in order to offer stocks to the general public commonly referred by the term Initial Public Offering (IPO). It has been noted that the 1934 Securities and Exchange Act was crucial in the creation of Securities and Exchange Commission. The commission has been accorded the mandates of regulating on how organizations manage and report stocks during and after the IPO.

Business laws reflecting at the intellectual property law protects the brand associated by the products and the services offered by organizations to the target customers. A brand to a company is a source of revenue that must be protected. Intellectual property laws enable companies to protect themselves from unauthorized use or theft of own creations. Some of the common laws in intellectual property identify with patent laws, copyright laws and trademark laws (Emerson & Hardwicke, 2007).

Business laws focusing at corporate finance establish the worth of organizations and the worth of the stocks issued. Laws on corporate outlines the tools applied in the financial calculation of value and roles of directors (Sandhusen, 2008). The shareholders are protected by legal rights in regards to dividend and securities payments. An example is the Sarbanes-Oxley Act that came into force after the Enron Scandal to protect shareholders.

Surveys have shown that there are different structures of laws that protect different parties involved in the organizations. The laws focus at sole traders/Proprietorship, partnerships, Limited Liability Partnership, Limited Partnership , corporations, limited companies, unlimited companies, franchises, multinational organizations, Company limited by guarantee and non-profit making organizations among others (Fairfax & CLEP, 2007).

Conclusion

United States companies law has been effective in delivering the desired results, they have been amended a number of times to meet the changing business environment. Laws are critical in setting standards that must be observed in the forming, running and dissolving businesses. Corporations in the United States are incorporated in accordance with the laws of a particular state. Different States has varying laws depending on the business environment (Emerson, 2009).

References

Advani, R. (2011). The Wall Street MBA. New York: McGraw-Hill.

Emerson, R. W. (2009). Business Law . Washington, D.C.: Barron’s Educational Series.

Emerson, R. & Hardwicke, J. (2007). Business Law . Hauppauge, New York: Barrons Educational Series Inc.

Fairfax, L. & CLEP. (2007). CLEP Introductory Business Law. New York: Research & Education Association.

Nikbakht, E. & Groppelli, A. (2012). Finance. Hauppauge, New York: Barron’s Educational Series.

Sandhusen, R. L. (2008). Marketing. Hauppauge, New York: Barron’s Educational Series.

 

 

 

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