The work below has been written by another student to the original post. Please reply to it by providing at least 160 words, APA format, and citations. This is my final DB so please do your very best on it. Thanks. (reply to kicia)
Original post: Case Study: Wanda is a new Christian who has been planning to open a business with a life-long friend who is not a believer. Wanda has heard that somewhere in Corinthians it says that Christians should not enter a business partnership with an unbeliever. Not wanting to violate the teachings of the Bible, she has decided to form a corporation with her lost friend instead of a partnership.
However, Wanda still feels a little nervous about the situation. She comes to you for Christian advice. Does this verse prohibit her from forming a corporation with her lost friend? What about an LLC?
In considering this, Wanda remembers that she also has some stock in General Motors Corporation. She is pretty sure that GM has some unbelievers who are shareholders in GM. She is wondering whether this passage should lead her to sell her stock in GM as well.
Refer to the Assignment Instructions folder of the course for general directions. You should either use the words “Prohibits” or “Does Not Prohibit” in the subject line of your discussion board post, depending upon your conclusion. Do not use attachments as these are cumbersome and inhibit the discussion process.
Student posted: Although I disagree that Christians should only have business relationships with other Christians, believe that this particular verse cannot be interpreted any other way other than the way it is written. The way that I interpret the verse is that it prohibits believers from being around non believers, including doing business with them. I would suggest to Wanda that if she truly desires to follow the teachings of the bible, she should enter a business relationship with someone who has the same beliefs and is someone whom she has a good relationship with. I would also advise that she should consider thinking about forming a limited liability partnership with the lost friend instead of a corporation. The limited liability partnership will allow her to take fewer risks should the business relationship fail. If Wanda still chooses to form a corporation she should consider the legal and other aspects of forming a corporation.
First she would need to decide if the corporation is going to be a C corporation or an S corporation. Another factor to consider would be deciding if Wanda and her friend want the company to be a publicly traded company or a private one. Some of the factors about the formation of a corporation that should be considered are; a corporation is considered an individual entity for legal and taxation uses and corporations can be double taxed. Corporations have much more legal and government regulation than a non corporation and it is more difficult to dissolve a corporation than a partnership. The benefits of a corporation are, the corporation can get better financial backing through banks and investors and the losses are much less for a corporation because the owners have limited financial liability.
I would advise Wanda not to sell her stock in General Motors because she would be doing it out of uncertainty and panic. Should the stock become successful later on, she might have regrets about selling it. There isn’t really a way to determine if all of the stockholders that have stock in General Motors are believers. If Wanda still does not feel comfortable with the situation and it really collides with her beliefs then I would suggest that she sell her stock in General Motors.
Kunz, M. Five Major Differences between a Corporation and a Partnership. Retrieved from http://smallbusiness.chron.com/5-major-differences-between-corporation-partnership-18830.html
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