While the difference between a corporation and an individually-owned business is that corporation depends on its shareholders to manage the business and invoke the laws whereas, individually-owned businesses are owned by one individual who takes full control of finalizing business management decisions and has the full power and authority.
A corporation was developed by the First Americans in the 1790s, formed by groups that were presented with a charter, given by the Crown of Parliament. In order, to increase and the growth of trade routes, shareholders are formed by Joint-stock companies.
The process of corporation starts with companies purchasing stock (or shares) managed overseas. Shareholders weren’t responsible for any liability of debt. JSC has the right to sue, and be sued, right to hold properties, stay in control of the management and choose between the trade routes, and territory. Renewal for charters is very important to do within every few year’s reasons being if any territory was unhappy with the corporations they have the right to take back their shares.
From a business perspective, a corporation is a very efficient way to use in a business structure for reliability purposes. For example; when opening up a business there will be some difficulties you will encounter, companies can find themselves in financial needs. A corporation allows you to expand your business by sharing additional shares of stock, which will bring in additional money and will help with the growth of the company.
Individual- owned businesses are not like corporations where they have shareholders who are responsible for their division.
Individual- owned businesses are based upon one individual who is in control. They have the most power as to what’s right/wrong in the management. The lifestyle of an Individual- owned business is based upon all of the profits and earnings from the company and any capital or debt it may have. If the owner was to ever take early retirement or die suddenly then it is their responsibility to either look for a new owner, or to shut down the company reason being, the owner is the one who built the company
Corporate Power in a business perspective is defined by the amount of power and control by one individual and is capable of making a person do tasks based on the owner’s requests. Corporate power can be approached in two dimensions of power; internal and external dimensions.
The internal corporate power focuses more on the structure and who is in control of the management of the business and how it is carried throughout the society. For example; financial statements, marketing strategies, goods and services of products, recourses, etc. are daily activities that the owner of the business has to take care of. In other words, the internal dimensions are mostly based upon the business environment and how it operates its day-to-day.
Furthermore, the external dimension of corporate power is based upon society and how it’s structure. Whereas the internal dimensions were more as to who is in control, It does not take into consideration who is behind the seat, developing new ideas, making significant changes within the management, and how it influences the environment. The external dimensions allow us to understand the shaping of society and what needs improvement and what parts of the society we should be paying more attention to. It helps us to understand the employment issues, and why many individuals are struggling to find employment, or why there has been a low academic performance in certain parts of the economy.
In conclusion, corporate power and individual-owned businesses have their differences due to management control and the power to take control of the business and their policies. In a corporation world, the division of labor is divided equally among its shareholders each that is responsible for the administration of the business. While, in an individual-owned business, the workforce depends only on one to make the final decision on what they think is the best possible outcome for their company. If anything were to go wrong along the way it is then up to the owner to fix the problem because when you are an individual owner you are the one who is. All in all, both concepts have a different angle of how they manage their businesses but at the end of the day, their main purpose is to make sure that they do whatever is necessary to see their businesses expand and grow into bigger and better things.
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