Employers in Michigan who are facing the unpleasant task of firing one of their employees may be able to make the experience go more smoothly by keeping some things in mind. First, an employer should usually provide an employee with sufficient warning before firing them. Except in rare cases where the employee did something extremely deplorable, an employer should provide an employee with multiple opportunities to improve their work performance.
When two or more people come together to operate a business, they are said to be in a partnership. In a general partnership, each partner shares profits and losses equally unless otherwise specified in the partnership agreement. For general partnerships, there is no need for a written agreement to make the partnership valid.
Limited liability partnerships and limited liability companies are two similar but distinct types of business entity. Neither one is required to pay corporate taxes; instead, taxation falls upon the individual partners or members. Both entities are very flexible in their structure, allowing them to fit the needs of many types of company, but key differences between them set the two types apart.
For Michigan businesses, the terms acquisitions and takeovers are sometimes interchangeably used. There are different meanings between the two business maneuvers, however, depending upon whether the target company is acquired with its permission or without.
Michigan individuals who sell a franchise must follow strict guidelines regarding information that must be provided to a potential buyer about the franchise. If these rules are not followed, the seller can face stiff penalties.
When two Michigan companies join together, their merger may be classified as one of five different. Two common types of mergers are the horizontal and vertical mergers. A horizontal merger occurs when two companies in the same industry merge to gain market share and increase their profits. Vertical mergers occur when two companies in a supply chain for a single good merge. For example, a car dealership may buy a part supply company, which might lead to production that is more efficient.
A complaint has been filed in a Delaware U.S. Bankruptcy Court alleging that Hormel Foods Corp. failed to disclose issues that would eventually lead AgFeed Industries Inc. into bankruptcy. The suit states that Hormel Foods knew about serious issues with M2P2 LLC's operations that it failed to disclose before AgFeed Industries purchased the company's operations. Due to the far-reaching consequences of such a suit, some Michigan business owners may wish to play close attention to this case's outcome.
Selling a business in Michigan is likely to be a less stressful experience if the business owners have done their homework and has realistic expectations. While the sale of a business may sometimes throw up completely unexpected problems, some common pitfalls may be avoided when proper preparations are made prior to putting the business on the market.