Kindle99992.pdf

privately owned or publicly held corporations. They maybe unincorporated sole proprietorships owned by oneperson or partnerships between people or organizations,and the activities of the business are viewed as taxablepersonal income (McNamara, 2007). The sole proprietoris liable personally for all activities and operations of thebusiness. For-pro�t businesses can also be organized ascorporations (known as C corporations and S corpora‐tions). A corporation is considered its own legal entity,separate from the individuals who own it or who formedthe organization. Corporations can be for-pro�t or non‐pro�t (government owned, for example) (McNamara,2007). Corporations are usually formed to limit the liabil‐ity the founders will face if there are poor operations orharmful activities and so that stock can be sold in thebusiness. A board of directors is appointed to oversee theactivities of corporations. Finally, for-pro�t organizationsmay organize as limited liability companies (LLCs). TheLLC combines the advantages of the corporation withthose of the sole proprietorship. The founders have mini‐mum personal liability, unless a state or federal law is vi‐olated; they can sell stock in the business; they can retaina voice in management decisions, goals, values, and ac‐tivities; and they can share in pro�ts. This is a very popu‐lar form of for-pro�t organization (McNamara, 2007).

For-pro�t businesses rely on a formal structure with arigid hierarchy to accomplish their goals. A president or

hi f ti � th b i b i l39% of sample

You are viewing a sample of the Kindle version

Jennifer M. Allen and 1 more

Administration and Managementin Criminal Justice: A Service…

Kindle Edition:

Buy now with 1-Click

By clicking "Buy now with 1-Click", you agree to Amazon'sKindle Store Terms of Use. Sold by Amazon.com Services LLC

73 ratings

$78 49

Close