Presentation ~ above theme: "Chapter 8.  facility formed to lug on a commercial companies  Sometimes dubbed a firm or a certain  most of the time firms are developed to produce."— Presentation transcript:

1 thing 8

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2  facility formed to carry on a commercial enterprise  Sometimes called a firm or a firm  many of the moment firms are created to create goods or solutions to do a benefit  frequently individuals kind businesses come become much more productive through an unified efforts

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3  3 varieties  single proprietorship  Mowing lawns, babysitting  tandem  Doctors, lawyers  corporations  McDonalds, Nike…

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4  that company are developed so that groups of individuals have the right to become an ext productive  but does that activity coordinate itself?  how do us insure the everyone does their fair share?  Shirking occurs once the actions of a worker is much less than what has been agreed top top  Incentives effort to stop or minimization shirking  A team monitor deserve to oversee operating activity—a boss

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6  ease of begin up – organization license, site permit (CO), name  couple of regulations – zoning laws, health codes, etc.  single receiver of revenues  Full regulate  easy to discontinue

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7  Unlimited an individual liability  restricted access to resources  absence of permanence (limited life)  lack of fringe benefits

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8  owned by two or much more people  basic – share equally in responsibilities and also liability (doctors, etc.)  minimal – one partner is the general partner, remaining partner contributes money  restricted Liability – every partners are minimal but features like a general

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9  ease of begin up –  posts of partnership (spells the end rights and also responsibilities)  few regulations  more capital  common decision making and specialization  No organization taxes – simply on revenues

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10  unlimited liability – basic partners are completely responsible, all partners suffer together incurring debts and suits  Potential for conflict  hiring decisions  purposes of the for sure  Operating society  profit sharing

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11  corporations – individual legal reality  Ownership and Mgt. Separated  separation, personal, instance stockholders own own shares  around 20% of all businesses in the U.S, but sell about 90% the all calculation  famous case: Santa Clara county v. Southerly Pacific Railroad agency (1886) set a criterion that enables corporations defense under the 14 th amendment

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12  section 1. Every persons born or nature in the joined States, and subject come the jurisdiction thereof, are citizens the the unified States and also of the State wherein they reside. No State shall do or enforce any kind of law i m sorry shall abridge the privileges or immunities of citizens of the unified States; nor shall any State deprive any kind of person that life, liberty, or property, without due process of law; no one deny to any kind of person within its jurisdiction the equal protection of the laws.

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13  closely held companies – privately held, rarely trade stock, happen it top top to family  Public held corporations – stocks room bought and also sold in ~ financial markets  Corporate frameworks – board of directors, officers, managers, employees, etc.


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14  restricted Liabilities for owner  share carries no obligation  Transferrable property  deserve to sell stock commonly  capability to attract funding  long life  companies exist “in perpetuity” http://www.stosselintheclassroom.org/index.php?p=onsite.php&url=http://cdn.abcnews.com/st ossel/free/Stossel/080216_2020_stossel_sambuck.wmv

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15  cost and challenge of start up  needs a charter, constant reports and also gov’t. Scrutiny  dual taxation  taxation on profits and capital profit  Potential ns of control  Boardroom coup!  more legal requirements and regulations

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16  Horizontal closing – 2 or more firms comparable firms tie the node  (in the same industry)  vertical mergers – authorized of two or more firms connected in various stages of the supply chain  permits a firm to operate much more efficiently  control all phases of production http://www.freepress.net/ownership/chart/main

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18  Conglomerates – have much more than 3 businesses that make unrelated assets  Multinational corporations – run in more than one country at a time  administer jobs worldwide, spread an innovation  negative influences on society and politics ALTRIA group

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19  Franchises – semi- independent organization that pays fees to a parent agency  granted the right to market a particular product in one area  cooperative – owned and also operated by a group for shared benefit  consumer – sell merchandise to members in ~ a cheaper price  company – carry out a business such together a credit union  Producer – farming markets, assist to sell products

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20  do not seek to knife a profit, benefit culture  expert organizations – help people in certain an abilities  business organizations – promote organization interests in a ar  trade Associations – promote industries  job Unions – boost working problems

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