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
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
3 3 varieties single proprietorship Mowing lawns, babysitting tandem Doctors, lawyers corporations McDonalds, Nike…
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
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
7 Unlimited an individual liability restricted access to resources absence of permanence (limited life) lack of fringe benefits
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
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
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
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
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.
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
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
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
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
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
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