• Name of the Corporation;

• Purpose of the Corporation;

• Location of the Corporation’s main office;

• Names and addresses of all directors;

• Duration of the Corporation;

• Face value of capital stock which may be issued;

• Voting rights of the stockholders.

There are two types of Corporations closed (private) and open (public). A small business Corporation is usually a closed Corporation. This means that capital stock is not sold to the public. If one of the stockholders decides to sell stock, it is usually sold to one of the other stockholders or to someone of whom they all approve.

A public or open Corporation offers it is stock to the public. This means that it is stock is available to anyone who wants to buy it. The principal owner of a public Corporation is the majority stockholder.

Advantages of the Corporation:

- Limited Liability. A Corporation is a Limited Liability business. Incase of business failure the owner risk to lose only the business assets. The Corporation’s owners are a stockholder, which means they can lose only the value of the stock.

- Variety of skills, abilities and ideas. The Corporation has the advantage of many owners with different skills and talents.

- Easy transfer of ownership. If a stockholder wishes to leave the Corporation, all that the stockholder must do is sell the stock. Many prospective buyers are available through brokers, the stock exchanges or over the counter in a private sale.

- Ease of expansion. The Corporation can be easily expanded. When more capital in needed, additional stock is sold to the public. Some Corporation’s sell bonds instead of stock to raise capital.

- Unlimited Existence. One advantage of the Corporation is that the business does not dissolve if a stockholder dies or leaves. The stock goes to the holder’s heirs and the Corporation continues operating.

Disadvantages of the Corporation:

- Complexity and High Cost. It is very difficult to form a Corporation as it requite a lot of costs. Corporations have to pay a lot to the lowers and to the governments in the form of taxes.

- Lack of Freedom of Action. A Corporation can only perform those activities which are stated in it is charter. Stockholders are not free in there actions.

- Government Regulation. More of the federal and state regulations apply to Corporation that to any of the offer forms of business. Corporation must be publicly audited each year.

- Profit Sharing. Profits in the Corporation are shared among the stockholders in proportion to the number of there shares. The profits are usually in the form of dividends paid annually.

- Taxes. This is a main disadvantage of Corporation. Corporations are subject to double taxation. Corporation pay taxes on profits and stockholders pay taxes on the dividends they received from those profits.

Management and Managers.

General management decision making requires the coordination of all aspects of business. In other words GM’s are concerned with strategy formulation and strategy implementation. It’s important to coordinate four main functional areas of business finance, marketing, production and human recourses. The GM must be especially competent in human recourses management. The meaning of general management varies by circumstances. In a small one-person business the chief decision maker has to be an all-round manger. He must be capable of long-term planning as well as daily “fire fighting” since there is no specialized staff to delegate these responsibilities to. In larger firms there are usually several people who share the general management workload. There titles are different: president, MD, vise-president and so on.

Usually responsibilities of a GM include the following:

• Long-term planning for new products, production processes, new markets, financial flexibility

and organizational changes.

• Finding and training competent subordinates. The GM’s goal is to delegate as much responsibilities and authority as possible to subordinates in finance, marketing, production and human recourses in order to be free for the major decision concerning the overall company.

• Coordination. The GM’s goal would be to ensure that the various activities of the company reinforce one another.

• Decision making. The GM will make decisions that subordinates can’t make because they can lack a perspective on the issues that need to be considered. To perform these demanding function adequately the GM must be able to appraise the company and it’s environment thoroughly and objectively.

Financial management ensures the implementation of five basic financial goals: profitability, stability, liquidity, efficiency and growth.

Proper utilization of people is a very important aspect of management. Worker performance is closely related to motivation. By improving the quality of work life through satisfaction of fundamental and personal employee needs, managers attempt to direct the behavior of workers toward the company goals.