The paper “ Highland Credit ADI - Legal and Risk Management Requirements of Small Business” is a perfect example of the case study on management. This research is to be undertaken on Highland credit ADI a financial intermediary. This is a young financial institution lending to micro and small enterprises. The mission of the organization is lending to the unbanked middle-level entrepreneurs who do not have the ability to borrow from mainstream banking instruction. The main business of Highland credit ADI is not only lending but also provides saving products to its clients. This business is in the financial services industry but actually as a very small actor as it deals with institutions with almost non-formal management structures.
The financial industry is very competitive but also very profitable. The financial services industry constitutes banks, financial intermediaries, insurance companies, and agencies. There are several players in this business. Customers of this business are mainly business proprietors in the micro enterprise's sector. Most of them are sole proprietors but some are partnerships and limited liability companies. Other people mostly involved in the business are the regulatory authority representatives since authorized deposit-taking institutions like Highland Credit ADI have some daily compliance ratios which have to be inspected by the central bank so that the client deposits are safeguarded.
Auditors and tax inspectors are also stakeholders in the business just as employees of the company where each of them is looking for their interest. This research is much restricted since client information is subject to privacy laws while the secrecy of the company’ s’ strategic information is usually subject to limited access. Ownership structureThis business entity is registered as a private limited liability company where ownership is units of shares.
Owners of the limited liability company do have their liability in case of winding up only limited to their shareholding units and do not affect their other interests. Being a limited liability business enterprise the company’ s liabilities are separate and independent from the shareholders (James, pp. 131). The business entity of this type can own property and enter into a legal contract with other parties just like any other.