Presentation ~ above theme: "Chapter 8. establishment formed to bring on a commercial enterprise Sometimes called a agency or a certain most of the time firms are created to produce."— Presentation transcript:
1 thing 8
2 establishment formed to bring on a commercial companies Sometimes called a firm or a certain many of the moment firms are created to create goods or solutions to make a benefit commonly individuals form businesses come become much more productive through combined efforts
3 3 species sole proprietorship Mowing lawns, babysitting tandem Doctors, lawyers companies McDonalds, Nike…
4 this firm are created so that teams of individuals have the right to become more productive but does that activity coordinate itself? exactly how do us insure the everyone does their fair share? Shirking occurs as soon as the habits of a worker is much less than what has actually been agreed ~ above Incentives attempt to stop or minimize shirking A team monitor deserve to oversee operation activity—a ceo
6 lull of start up – company license, site permit (CO), surname couple of regulations – zoning laws, health and wellness codes, etc. single receiver of revenues Full regulate straightforward to discontinue
7 Unlimited personal liability limited access to sources lack of permanence (limited life) lack of fringe services
8 owned by two or more people general – share same in responsibilities and liability (doctors, etc.) limited – one companion is the basic partner, remaining companion contributes money restricted Liability – all partners are restricted but functions like a general
9 lull of start up – write-ups of cooperation (spells out rights and responsibilities) few regulations much more capital common decision making and specialization No company taxes – just on profits
10 unlimited liability – general partners are completely responsible, all partners suffer together incurring debts and suits Potential for conflict hiring decisions purposes of the firm Operating society profit sharing
11 corporations – separation, personal, instance legal entity Ownership and Mgt. Separated separation, personal, instance stockholders own own shares around 20% of all businesses in the U.S, however sell about 90% of all output famed case: Santa Clara county v. Southern Pacific Railroad agency (1886) collection a precedent that allows corporations protection under the 14 th modification
12 section 1. All persons born or naturalized in the unified States, and also subject come the jurisdiction thereof, space citizens the the joined States and also of the State wherein lock reside. No State shall make or enforce any kind of law i m sorry shall abridge the privileges or immunities of citizen of the joined States; no one shall any kind of State deprive any person that life, liberty, or property, there is no due procedure of law; no one deny to any person within its jurisdiction the equal defense of the laws.
13 very closely held companies – privately held, hardly ever trade stock, pass it ~ above to family Public hosted corporations – stocks are bought and also sold in ~ financial sectors Corporate frameworks – board of directors, officers, managers, employees, etc.
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14 restricted Liabilities for owners share carries no responsibility Transferrable ownership have the right to sell stock generally capability to attract funding lengthy life enterprise 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 difficulty of begin up requires a charter, regular reports and also gov’t. Scrutiny double taxation taxation on profits and capital profit Potential lose of regulate Boardroom coup! an ext legal requirements and regulations
16 Horizontal closing – two or much more firms similar firms tie the knot (in the same industry) upright mergers – involvement of two or much more firms affiliated in different stages the the it is provided chain permits a firm come operate an ext efficiently manage all phases of production http://www.freepress.net/ownership/chart/main
18 Conglomerates – have much more than 3 businesses the make unrelated assets Multinational corporations – operate in more than one country at a time carry out jobs worldwide, spread modern technology an unfavorable influences on society and national politics ALTRIA team
19 Franchises – semi- independent service that payment fees to a parent firm granted the right to market a specific product in an area cooperative – owned and also operated by a team for shared advantage consumer – market merchandise to members in ~ a cheaper price organization – provide a business such as a credit transaction union Producer – farming markets, help to sell assets
20 do not seek to earn a profit, benefit society experienced organizations – help people in certain skills service organizations – promote organization interests in a place profession Associations – promote sectors labor Unions – enhance working problems