The privately held corporation companies like the Thomas Corporation does not need to sell their shares on a stock exchange except for public held corporation. The thing about how they are different is, privately held companies can be small firms, or they are combine together which owned by a short group of people. They can also be partnerships or sole proprietorship, but privately held corporations do not need a requirement to disclose financial information except it will be best to keep up with the paying the taxes as well. Publicly held corporation, on the other hand, does have a typical task as selling its shares on a stock exchange and can subject to the number of financial regulations and reporting requirements. Protecting their …show more content…
In addition, the other situations this corporation faced up is they have to choose an appropriate legal ownership structure that puts into the fact that allows the growth of a new business which was enabled. It can be difficult to recognize this business ethical issue in practice to why the board members of Thomas Corporation wanted to buy the supplying company. I definitely will say that a business move should be compatible to the concept of ethics as it continues to grow. Because if they were to follow the code of ethics that provides them the guidelines and principles, this task could provide the support to help the employee’s organizational objectives to build and identifying the issues as necessary. I think the Thomas Corporation should be in the publicly owned corporation. When this company wants to stay in that route the owner must take advantage of disclosing the financial information to the public under specific laws that regulate the trade of stocks and other securities. The thing about this threshold is there can be a possible chance a public company (like Thomas Corp) will go out of business by losing the value of their stocks and bonds, but the owners cannot afford to lose their personal assets. The limited sources of funds can depend how much it will be available to the sole proprietorships to pay higher interest rates on funds to borrow from this corporation or the