How can the forms of business organizations impact the control of the firm and ethical behavior?
Solution
Different forms of business organization have different reporting structure designs as per the relative roles and functionalities of different designations in the organization. In some rudimentary forms of business organization like Sole Proprietorship Concern, Partnership Firm and Private Limited Company, Ownership and Management are one and the same I.e. absence of independent professional management, wherein business decision making and business administration is in the hands of business owners themselves. The question of control of business and ethical behaviour comes into picture in a situation where the business stakeholders (including customers) and business management is different and business decision-making is concentrated in the hands of few. The forms of business organization where control of firm\'s business including strategic decision-making to daily business administration is in the hands of very few with stakes spread over many are vulnerable to unethical behaviour.
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How can the forms of business organizations impact the control of the.docx
1. How can the forms of business organizations impact the control of the firm and ethical behavior?
Solution
Different forms of business organization have different reporting structure designs as per the
relative roles and functionalities of different designations in the organization. In some
rudimentary forms of business organization like Sole Proprietorship Concern, Partnership Firm
and Private Limited Company, Ownership and Management are one and the same I.e. absence of
independent professional management, wherein business decision making and business
administration is in the hands of business owners themselves. The question of control of business
and ethical behaviour comes into picture in a situation where the business stakeholders
(including customers) and business management is different and business decision-making is
concentrated in the hands of few. The forms of business organization where control of firm's
business including strategic decision-making to daily business administration is in the hands of
very few with stakes spread over many are vulnerable to unethical behaviour.
