Write a paper that explains how the structure of an organization impacts its effectiveness in the context of critical circumstances. 3078.1.2 : Legal Considerations for Organizations The graduate describes common legal considerations for the creation and operation of a business organization. INTRODUCTION ________________________________________ Today’s business environment requires leaders to have competency in effective organization design and to consider legal factors that influence whether strategic goals are achieved. In this task, you will discuss legal entity types and their influence on taxation, liability, and ownership and control. You will also discuss the legal and ethical obligations that an employer and employees have in a business context. SCENARIO ________________________________________ A local farmer and a supermarket retailer plan to enter into a business venture to open a downtown farmers market every weekend from April through October. The goal of the farmers market is to bring fresh organic produce to an area of the city that would otherwise not have access to organic fruits and vegetables. The retailer would like to have more decision-making authority in order to control the marketing and ownership of the warehouse space that will host the farmers market. The local farmer is personally concerned about the financial impact of having a primary stake ownership because the farmer does not want to suffer a large financial loss if the business venture is not successful. (The farmer has been affected in the past by things outside of their personal control, such as excessive rain which caused decreased profits over the past two seasons) The retailer has proposed they include outside investors in order to have access to capital and expertise that will help create distribution efficiencies. The local farmer would like to limit outside investors and external decision-making influence in the business because the farmer doesn’t want to lose primary control of the farmers market. The local farmer currently grows enough produce to have 20 stalls at the farmers market. The retailer would like to plan for growth by beginning the farmers market with the produce that the local farmer grows and then double the number of stalls offered each year by adding organic options from other regional farmers markets to build sustainable networks. The retailer proposes organizing the farmers market venture as a corporation, while the local farmer recommends organizing as either a limited liability company or a general partnership. Two years after the retailer and local farmer establish the farmers market, there has been notable growth. The farmers market has expanded to include additional regional farmers who provide more produce every weekend. To manage the farmers market, the retailer and local farmer have hired general managers with
