Reference no: EM131043361

Corporation is an organization, usually a large business, with specific characteristics. Corporations are deemed separate legal rights from their owners, which means that the corporations are legally liable for their actions and debts instead of the owner. If a corporation incurs debts, creditors can only claim against the assets of the corporation but not the personal assets of the owner. The advantages of forming a corporation is that there is limited liability, having ability to raise money by selling shares, separate corporate tax treatment and more advantages when hiring staffs. However, to set up a corporation requires time, high cost and involves complex paperwork. In addition, some special cases' profits are doubled tax. Which means, the corporations pays the taxes and when the owner receives dividends, he pays his taxes again.

I strongly believe that there are both good and bad corporations.

Google is an example of Good Corporation. As one the world's largest corporations, it is clear that Google's effort is paying off as a search giant, which made aggressive moves on multiple fronts toward good citizenship. For example, Google Green is a corporate effort to use resources efficiently and support renewable power. Investments in these efforts have real-world effects on the bottom line. Google has seen an overall drop in power requirements for their data centers by an average of 50 percent. These savings can then be redirected to other areas of the business or to investors.

Bayer, maker of Aspirin, was an example of a Bad Corporation. As one of the top pharmaceutical companies in the world, in 1984, they discovered that a product that they were selling was infecting people with H.I.V. Just like any other responsible company, they stopped marketing that product and produced another safer medication before exporting the contaminated products to Asia and Latin America, where it continued to be sold. However, they continued with the production for another few months, as the new medication requires a higher cost to be produced. It was reported that 6,000 people in United States suffered from H.I.V and AIDS from the medication.

Please respond to this question "Based on the readings and your enriching discussion, explain how the reduced personal risk of a corporate organization allows for greater efficiency? Be specific." All i need is a one or two paragraph response please.