Project Work Answers Analysis On Walmart is a Corporation NM1B

Student’s Name
Institution Name
Course
Professor’s Name
Date
Law with Business
INTRODUCTION
v Walmart was the leading company among th …

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Student’s Name
Institution Name
Course
Professor’s Name
Date
Law with Business
INTRODUCTION
v Walmart was the leading company among the
fortune 500 companies in 2021.
v Its product line include hardware, groceries,
furniture, entertainment, health goods, appliances
and wellness products.
v Its ability to buy in large quantities enhances
economies of scale providing discount for customers.
v Walmart is an multinational American retail
corporation.
v Its headquarters is in Bentonville, Arkansas in the us.
v It was incorporated in 1969 and has excellently
performed since then.
Organization Entity
ü Walmart is a corporation.
ü Walmart is a legal separate entity and distinct
form its owners   (Walmart, 2022) .
ü It acts under its own name.
ü It presents professional management.
ü Ease of capital acquisition.
ü Relatively easy to transfer ownership.
ü Limited liabilities.
ü Unlimited life.
Business Entities
• sole
proprietorship.
• G eneral
partnership.
• L imited
partnership, LLC.
• C corporation.
• S corporation
• (Nechaev &
Antipina , 2016 )
Sole proprietorship
v It is owned by a single entrepreneur who
often operates.
v It is not a separate legal entity.
v The entrepreneur caters for the losses and
profits accrued.
v Does not require formal paperwork to
start.
Legal Creation and Termination
• It doesn’t require a lot of formalities to
creates.
• The owner needs to have a trading
licenses.
P artnership
Description
• Can start automatically
• Doesn’t require formal
registration with state
government
• Founders are liable for legal
actions against any liable
incurred.
• Profits and loses are shared
by the partners.
Legal creation & termination
• Does not require a written
agreement to form but can be
terminated with a court order.
• Partnership can be dissolved
through legal notice,
termination of partnership,
death of partners or
bankruptcy and dissolution by
agreement.
L imited Liability company partnership,
LLC
Discussion
• LLCs provides the owners
the flexibility to choose the
taxing methods.
• Is an separate legal entity.
• Owners recognize income
through personal tax
returns, profits and losses.
Legal creation & termination
• Creation requires filling the
articles of organization
and the termination can be
through action of the
members, filling out of
certificate of dissolution,
court orders.
C corporation
Discussion
ü They are separate legal entities
and acts under its own name.
ü It presents professional
management.
ü Ease of capital acquisition.
ü Limited liabilities.
ü Unlimited life.
ü Relatively easy to transfer
ownership.
Legal creation & termination
• It requires choosing and
registering unregistered
business name then filing of
articles off incorporation is
required and they offer stock to
shareholders who are the
owners.
• It can be terminated through
voluntary dissolution, creditor
or shareholder lawsuit.
S corporation
Discussion
• Unlike c corporation, it
does not have double
taxation which could be
good for Walmart.
• Has reduced personal
liabilities
• Operates under a corporate
charter in specified state.
Legal creation & termination
Formed by filling an S
corporation election with the
IRS which are timely shared
by all shareholders. It is
terminated by a vote by
shareholders who make up to
50% of the outstanding stock
in the agreement to terminate
the S corporation status.
Other business structures
include;
• sole proprietorship.
• Partnership.
• L imited Liability, LLC.
• C corporation.
• S corporation
The business structures that can
apply for Walmart are;
ü L imited Liability, LLC.
ü C corporation.
ü S corporation
Business structure of the
organization
Ø Walmart is both a retail and
wholesale business.
Walmart is among the largest
corporations worldwide.
Ø It utilizes corporations as a
business structure which
gives it a separate legal
entity form its owners
( Ragulina , Stroiteleva &
Miller, 2015 ).
DIFFERENT BUSINESS STRUCTURES
WHICH CAN BE ADOPTED
L imited Liability, LLC.
C corporation.
S corporation
Strengths
• Easy additions of investors, new
shareholders and co-owners.
• They also eases issuing of shares
more easily.
• It also enhances transfer of
ownership, protection of workers and
the owners from liabilities accruing
form the business.
Weaknesses
o They cost more during
formation and maintained.
o It has higher formation
fee and many states
imposes ongoing fees like
annual franchise fees.
o They are also time
consuming
o Rigid formalities
o Causes double taxations
like for corporations.
Summary
v Walmart operates as a corporations which has enabled the
company to successfully gain worldwide market.
v Operation as a corporation is effective for Walmart despite
its complexity in setting up the business requiring the
owners to comply with more tax requirements and
regulations.
v The disadvantage of the corporation is that it has personal
liability protection, easier accessibility to capital, and better
business security. Its disadvantages are double taxation and
subjectivity to rigid formalities and protocols which the
company has to follow cause they are time-consuming.
References
Nechaev , A. and Antipina , O., 2016. Analysis of the
Impact of Taxation of Business Entities on the
Innovative Development of the Country.
Ragulina , Y.V., Stroiteleva , E.V. and Miller, A.I.,
2015. Modeling of integration processes in the
business structures. Modern Applied Science , 9 (3),
p.145.
Walmart, 2022. Walmart.com | Save Money. Live
Better . [online] Walmart.com. Available at:
[Accessed 6 May
2022].

QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER

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