communication partner
ORGANIZATIONAL STRUCTURE
Business
Busness Entitites
Corporation
Cooperative
Partnership
Sole Proprietorship
Subsidiary
United States
Benefit corporation - a type of corporation required by law to create general benefit for society as well as for shareholders. A type of for-profit charity corporation.
C corporation - any corporation that, under United States federal income tax law, is taxed separately from its owners. A C corporation is distinguished from an S corporation, which generally is not taxed separately. Most major companies (and many smaller companies) are treated as C corporations for U.S. federal income tax purposes.
LLC - a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions. LLCs do not need to be organized for profit.
S corporation - these do not pay any federal income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.
MNC - a corporation that is registered in more than one country or that has operations in more than one country.
Associate Company
An associate company (or associate) in accounting and business valuation is a company in which another company owns a significant portion of voting shares, usually 20–50%. In this case, an owner does not consolidate the associate's financial statements. Ownership of over 50% creates a subsidiary, with its financial statements being consolidated into the parent's books. Associate value is reported in the balance sheet as an asset, the investor's proportional share of the associate's income is reported in the income statement and dividends from the ownership decrease the value on the balance sheet.
In Europe, investments into associate companies are called fixed financial assets.
Associate value in the enterprise value equation is the reciprocate of minority interest.
Business Divisions
Divisions are distinct parts of a particular business. Divisions may belong to one company for which that company is legally responsible for all of the obligations and debts of the division. However in a large organisation, various parts of the business may be run by different subsidiaries, and a business division may include one or many subsidiaries. Each subsidiary is a separate legal entity owned by the primary business or by another subsidiary in the hierarchy. Often a division operates under a separate name and is the equivalent of a corporation or limited liability company obtaining a fictitious name or "doing business as" certificate and operating a business under that fictitious name.
Business Departments
Unlike a Business Divisions or profit center, a Business Department is considered as a cost center. Divisions are then accountable for both income and expenditure , while departments normally focus on one side of accounting either revenue or expenditure. When a department takes on responsibility for creating profit, it is generally referred to as a division.
Holding Company
A holding company is a company or firm that owns other companies' outstanding stock. The term usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies. In the United States, 80% or more of stock, in voting and value, must be owned before tax consolidation benefits such as tax-free dividends can be claimed.
Shell Company
A shell corporation is a company which serves as a vehicle for business transactions without itself having any significant assets or operations. Shell corporations are not in themselves illegal and have legitimate business purposes. However, they are a main component of the underground economy, especially those based in tax havens. They may also be known as international business company, personal investment companies, front companies, or "mailbox" companies.
Shellcompanies are also used for tax avoidance. A classic tax avoidance operation is based on the buying and selling through tax haven shell companies to disguise true profits (owning assets most likely to be intangible, such as royalties or copyrights and then receiving income. This would protect owners against litigation and provide some tax benefits such as the dection of expenses that would not only be deductible for a corporation and not an individual). Sometimes, shell companies are used for tax evasion (both legal and otherwise).. The firm does its international operations through this shell corporation, thus not having to report to its country the sums involved, avoiding any taxes.
Limited Liability Company
- AG / LLP (private limited Company)
- GmbH / Corporation (public limited Company)
Partnerships
· KG / (General Commerical Partnership)
· OG / (Limited Commerical Partnership)