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BUS 210 Organizational Behavior and Culture

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Business Structure (JavaNet) :-
Every Business needs to be structured in such way that helps its owners to achieve their business
objectives. The choice of business structure is based in business requirements that affect business
financially and legally. Different factors that affect choice of business structures are liabilities, taxation,
legal filling, financing, management and life of the business. After careful analysis of different business
structures and factors as discussed above the best suitable business structure of JavaNet is Limited
Liability Company” . (Gerlad and Angliena,2010). LCC is newest and unique form of business structure
that offers combination of tax advantages similar to partnership limited liabilities similar to
corporations. JavaNet can have following advantages due to LCC business structure. JavaNet being LCC
can achieve maximum benefits under string business structure of Management and limited liabilities on
its members.
Liabilities:- The Management/Owners at JavaNet as LCC will receive limited liability from
business activities. The partner/members of JavaNet LCC will not personally liable for
debts/obligations that might be incurred by business and risks at only amount or shares they
have invested in JavaNet.
Taxation. JavaNet being LCC can get taxation benefits of partnership. JavaNet can enjoy the
tax benefits with some corporate level advantages.
Legal Filling. However there are Complexities related to legal filling and cooperating process
but keeping benefits of limited liabilities company and business objectives of JavaNet it can
easily pass through legal requirements.
Financing Issues:- JavaNet being LCC can easily manage its financial affairs as LCC business
structure has flexibility in terms of financing as compared to partnership or sole proprietor.
JavaNet being LCC can be financed by combination of debt plus member’s equity based
financing.
Management Issues:- JavaNet being LCC offers flexible management structure, the 3
management committee members each having one vote decides major management issues
like size of business and finances etc. Members of LCC has freedom of delegating
management authorizes and business structure
Business Life:- JavaNet being LCC has unlimited life and change of ownership can only occur
with majority of members vote.

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