Problem
A. Henry Ford (Ford Motor Company), Ray Croc (McDonald's), and Levi Strauss (Levi's) were all entrepreneurs who decided to incorporate their businesses and in doing so created long-lasting legacies that outlive them. Why do you think these entrepreneurs were motivated to incorporate when incorporation meant giving up control of their companies?
B. Some corporations are created for just a limited time. Can you think of any strategic reasons why founders would created a corporation for just a limited time?
C. Recently some companies have come under fire for moving their corporate headquarters out of the country to tax havens such as Bermuda or Barbados. Which duty do you believe is higher, the duty of corporations to pay tax to government or the duty of corporations to pay dividends to shareholders? Why?
D. Some critics believe that the corporate tax code is a form of welfare, since many U.S. corporations make billions of dollars and don't pay any tax. Do you believe this criticism is fair? Why or why not?
E. It is very easy to start a corporation in the United States. Take a look at how easy it is to start a corporation in China or India. Do you believe there is a link between ease of starting businesses and overall economic efficiency?
F. Do you agree with filmmaker Achbar that a corporation might be psychopathic? What do you think the ethical obligations of corporations are? Discuss.
G. Most small businesses in the United States are still run as sole proprietorships. Why do you think these businesses have not converted to the LLC form?
H. Take a look at some of the brands and businesses you are most familiar with. How many of them do business as an LLC?