Murphy Ben International is a perfect example of a corporation. A corporation is completely different compared to a sole proprietorship and a partnership; a corporation is a legal entity while the others are attached to the owner(s). The corporation can buy and sell property, enter into contracts, and can sue and be sued. The interesting thing is that in the United States, about nineteen percent of businesses are corporations but they generate about ninety percent of revenues. That nineteen percent is quite a cash cow.
Murphy Ben International ownership works just like any corporation; they have shareholders. For a long time they were a private company, which were owned by about ten people; however, they went public couple of years ago to help expand the business. With the shareholders, they elect the board of directors who decide and appoint a CEO in order to facilitate the direction the business is heading towards. The board of directors also makes decisions over major policies and regulations, as well as set goals for their managerial staff to achieve. The shareholders earn income through dividends. They receive a portion of what the company made in the last fiscal year according to their amount of shares invested.
Like all major corporations, Murphy Ben International has many advantages compared to a sole proprietorship or a partnership. They have limited liability, access to more financial services, specialized management or staff, and immortality. Limited liability is when the corporation defaults on its loans or accounts payable and the shareholders are not held responsible. Since corporations have many assets and prove they earn a set amount of income every year, they can access many financial services from banks and other legal means since they have a reputation. The specialized management and/or staff is a must have to operate a corporation successfully. They are willing to pay well for specialized workers to help them achieve their goals for the company and the workers a rewarded quite well with a pay check and sometimes, major bonuses depending on performance. Immortality is the major distinction between corporations and other forms of businesses because if the shareholders die or retire, the corporation can live on longer than the people who created the company. This is possible since it is a legal entity, which separates it from the owners. If there is a lawsuit due to poor products or services, the company will be held responsible, not the shareholders.