Application Oriented Discussion Questions

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1.In reviewing the parameters of the team expansion assignment, you have decided to prepare a presentation for VRI's executives
(a) describing the nature of VRI's environmental informational complexity and resource needs (Re: The Readaptation Model): and how it effects designing an organizational structure. As part of the presentation, you plan to
In case of VRI executives, because of informational complexity and globalization, when the environment is changing, knowledge structures (whether tacit or codifying) are becoming less well adapted, leading to the generation and transmission of more codified information during the process of re adaptation. This phenomenon is related to the "dynamic transaction costs" that can afflict organization in a world of rapid change and expansion.

But in VRI case the knowledge is imbedded in organizations and institutions rather than in technology. Smith's own account of the division of labor is very much about how (re)organization can yield increasing returns - about how knowledge can be imbedded in an organizational structure and, through standardization, can both substitute for and amplify the knowledge the individual workers possess. This must be taken into account into organizing the structure of VRI as well as the organizational design.

(b) introduce the organizational structure you have designed for VRI. In preparation of your plan, you have decided to
Regardless of the product or service provided, Dr. Benrock needs to decide what form of business organization is most appropriate.
1) the sole proprietorship;
2) the partnership, which may be a general partnership, a limited liability partnership or a limited partnership;
3) the corporation, which for tax purposes may be a C or an S corporation; or
4) the limited liability company.

Dr. Benrock should consider the following Issues:
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· Decision making/management organization
· Liability for personal injury and product liability
· Taxation issues, including the tax treatment of profits/losses and the deductibility of employee benefits such as health insurance, group term life ...