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It is known that all commercial structures exist in one of three forms: sole proprietorship, partnership and corporation.
Sole proprietorship - a business owned by one person, who receives all profits from the business and has financial commitments.
Partnership - a voluntary association on the legal basis of two or more persons to conduct business.
Corporation - a company that exists as an independent entity, with its entire capital is divided into shares (stocks). The owners of the shares, are known to be shareholders. The main feature of the corporation is its limited financial responsibility. This means that the liability of shareholders for the firm's debts is limited to the size of their investment, that is a sum of money that they paid for the shares.
Since none of the forms of business organization is not perfect, were created by the so-called hybrids: the limited financial liability, joint stock companies and joint ventures.
The purpose of the organization - "to make ordinary people do extraordinary things." None of the organizations can not rely on geniuses, their suggestions are always unpredictable. However, the purpose of the board of directors is to get ordinary people to perform better. Also, the board aims to neutralize the weaknesses of the employees.
Do not be prescribed for the post of head of a man whose attention is focused only on the shortcomings of individuals rather than on their merits. Nor can it be put on the leadership position a person who believes that the mind is more important than honesty. Employees with which the head works quickly learn he has honesty or not. They may forgive him a great deal: incompetence or bad manners. However, they did not forgive his lack of decency, as well as the board of directors will not be forgiven for what he chose.
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