Comments and Questions

If corporations are considered as individuals with a group liability the decision makers could easily get away with international crime, whereas cases as kiobel v. shell supreme court case would become perpetual, occasionally politically motivated. Therefore, corporate limited liability should change into unlimited such specifically for the corporate decision-makers: The Rule of Law in Business From generations the rule of common law does not apply to business in its force and clarity because it is considered counterproductive in providing most adequate conditions for businesses to grow up. Business environment should be foggy and deregulated for economy to prosper was considered. Unless in the Common Law where clarity was main priority in Business Law the opportunism was its main priority. The ideas about the role of “the rule of law” differ: “Not surprising, people disagree a great deal about how many laws (and what sort of laws) are just right. For example, liberals tend to think we need lots of laws to control corporations, to protect minorities, to protect the environment and to provide social goods. As another example, while American conservatives claim they are for “small government”, they tend to want more laws limiting things such as sex, drugs, and various personal liberties they disagree with. This nicely matches the fact that the guiding “principle” of most people is “people should do what I want and not do what I do not want them to do.” So, people tend to favor many laws against what they dislike and many laws for what they like. They tend to be against laws that are for what they are against and against what they are for.” For businesses an environment of “do not see do not say” with limited business laws is considered the best. policies of “easy business” are widespread: “Jun 1, 2010 Cameron announces his initiative for change. Picture: Andrew Yates/GettyIn his first speech as Prime Minister, David Cameron promised to aid companies by cutting red tape, improving the speed of business start-ups and kick starting bank lending.” Cameron’s speech reflected the plans for businesses laid out in a new document, which was released last week in partnership with the Liberal Democrats.In the document, the coalition government promised to introduce a one-in-one-out rule, whereby no piece of new regulation would be introduced without the exit of another. It also stated it would find a practical method of making small business rate relief automatic and would aim to level the playing field between small and large retailers, by enabling local councils to take into account competition laws whilst drawing up plans to shape new retail development.The government added it would make the UK one of the fastest countries in the world to set up a new business and would end the ‘gold-plating’ of EU rules, so that British companies would no longer be at a disadvantage against their EU competitors.” Any experienced business attorney could confirm countless stories of corporate management getting away with fraud by not paying on contracts. Number of schemas of how to trick the system and avoid legal actions is developed in details. Corporate limited liability laws are craftily exploited and are examples of this philosophy; e.g., countless fake offers on the Internet, through Junk mail or even on TV are coming from happy “honest” executives and advertisers with offers for easy money and immanent success if we buy their product, follow their advice or give them some money in advance. There are some laws that try to curb on such activities of fake advertising and canning promotions, but these laws are so difficult to win in court unless multiple fraud is not resulted in serious financial harm. However, preventive actions against possible fraud are very rarely taken. Moreover, the biggest harm for the economy does not come from pyramids and financial fraud but from the general “insecurity” resulted of such lawlessness. When in the past “easy business” could have been positive to boost pro-supply economies, which have already changed into pro-demand economies of a global marketplace. Hence, financing has been changing too: the narrowing profit margins of the US businesses have Large Capital well gone oversees particularly to China and now India even in case SMB have rarely been financed by large investors anyway, the ones left were the Small and Medium Investors who were the heaviest hit by the last recession. “What Does Venture Capital Mean?Money provided by investors to startup firms and small businesses with perceived long-term growth potential. This is a very important source of funding for startups that do not have access to capital markets. It typically entails high risk for the investor, but it has the potential for above-average returns. Investopedia explains Venture CapitalVenture capital can also include managerial and technical expertise. Most venture capital comes from a group of wealthy investors, investment banks and other financial institutions that pool such investments or partnerships. This form of raising capital is popular among new companies or ventures with limited operating history, which cannot raise funds by issuing debt. The downside for entrepreneurs is that venture capitalists usually get a say in company decisions, in addition to a portion of the equity.” In a pro-supply economy experiencing growth in a local marketplace (before the globalization took over) the system of deregulation and clueless business laws might have worked well. However, the situation in the world has changed greatly to a pro-demand open globalized marketplace, whereas the relative insecurity of small and medium businesses because of lacking clarity of business laws started having a negative market effect of: Insecure contracting, bonding and limited personal liability of corporate structures consequences of underwriting financing difficulties. Usual for SMB are- Limited access to public financing;- Limited access to foreign markets experiencing economic growth;- Limited ability to outsource production or move some production to somewhere more advantageous Therefore, the necessity of stable borrow-ability in volatile economic environment or in direct competition to foreign companies, subsidized by their governments, is paramount. For SMB to be competitive would be only if better access to financing is available. The overall condition of small and medium businesses and their profitability directly reflects the overall conditions of ones economy because SMB provide the highest percentage employment of all, thus if SMB struggle to survive as it happened through the 2007 Great Recession so the middle class and the poor in the US economy overall. In an environment of globalization with open borders for business and ever-rising productivity, the large global corporations are not anymore interested in maintaining industrial production on US territory. Neither are they interested in investing into long term projects on US territory, because of the less expensive labor and well ongoing economic growth of China, India, Vietnam and etc. It is with the large investors who really are not coming back on the US market; because of the lower ROI, therefore it is up to the small and medium businesses to create employment. The clarity of business laws bringing out higher security to SMB and SMI is from great importance to revive US economy and to funnel so needed wealth distribution and redistribution for balancing demand-to-supply ratios. Small and medium businesses are much more flexible then large global corporations; SMB could develop in very diverse areas of business and reflect governments’ environmental policies much faster. When the Market Economics is implemented the small and medium business borrow-ability is going be based on enhanced market “security”. On the market not on artificially general subsidizing by governments in a lack of business laws marketplace practiced until now, because by using genuine market forces lower market volatility and redundancy, and consequently prevent from economic turmoil. Posted by Joshua Konov at 3:21 AM Labels: development, economics, economy, globalization, market economics, philosophy, quantum economics© Joshua Konov, 2009