Presentation on theme: "Chapter 8.  Establishment formed to lug on a commercial enterpclimb  Sometimes dubbed a agency or a firm  Most of the moment firms are formed to create."— Presentation transcript:

1 Chapter 8

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2  Establishment created to lug on a commercial enterpclimb  Sometimes called a agency or a firm  Many of the moment firms are created to create items or services to make a profit  Normally individuals develop businesses to end up being even more fertile through merged initiatives

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3  3 Types  Sole proprietorship  Mowing lawns, babysitting  Partnerships  Doctors, lawyers  Corporations  McDonalds, Nike…

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4  Firms are created so that teams of individuals deserve to end up being even more productive  But does that activity coordinate itself?  How carry out we insure that everyone does their fair share?  Shirking occurs once the habits of a worker is less than what has actually been agreed upon  Incentives attempt to prevent or minimize shirking  A group monitor have the right to overview operating activity—a boss

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6  Ease of start up – organization license, website permit (CO), name  Couple of regulations – zoning legislations, health and wellness codes, and so on  Sole receiver of revenues  Full manage  Easy to disproceed

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7  Endless individual liability  Limited accessibility to sources  Lack of permanence (limited life)  Lack of fringe benefits

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8  Owned by 2 or more people  General – share equally in duties and licapability (physicians, and so on.)  Limited – one companion is the general partner, staying companion contributes money  Limited Licapacity – all partners are limited yet attributes prefer a general

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9  Ease of start up –  articles of partnership (spells out rights and also responsibilities)  Few regulations  More capital  Shared decision making and specialization  No organization taxes – simply on profits

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10  Endless licapacity – general partners are entirely responsible, all partners endure together incurring debts and suits  Potential for dispute  Hiring decisions  Goals of the firm  Operating culture  Profit sharing

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11  Corporations – individual legal entity  Ownership and Mgt. separated  individual stockholders own own shares  About 20% of all businesses in the U.S, however market around 90% of all output  Famous case: Santa Clara County v. Southern Pacific Railroad Company type of (1886) collection a precedent that allows corporations security under the 14 th Amendment

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12  Section 1. All persons born or naturalized in the United States, and topic to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make or enforce any legislation which shall abridge the privileges or immunities of citizens of the United States; nor shall any kind of State deprive any kind of perchild of life, liberty, or residential or commercial property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.

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13  Closely organized corporations – privately hosted, hardly ever trade stock, pass it on to family members  Public hosted corporations – stocks are bought and also marketed at financial sectors  Corporate frameworks – board of directors, policemans, managers, employees, etc.


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14  Limited Liabilities for owners  Stock carries no obligation  Transferrable ownership  Can market stock commonly  Ability to lure funding  Long life  Corporations 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  Expense and also difficulty of start up  Requires a charter, constant reports and gov’t. scrutiny  Double taxes  Taxed on revenues and capital gains  Potential loss of manage  Boardroom coup!  More legal demands and regulations

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16  Horizontal mergers – 2 or even more firms comparable firms tie the knot  (in the same industry)  Vertical mergers – joining of two or even more firms associated in different stages of the supply chain  Allows a firm to run even more effectively  Control all phases of manufacturing http://www.freepush.net/ownership/chart/major

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18  Conglomeprices – have actually more than 3 businesses that make unconnected commodities  Multinationwide Corporations – operate in even more than one country at a time  Provide tasks worldwide, spcheck out technology  Negative impacts on society and also politics ALTRIA GROUP

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19  Franchises – semi- independent business that pays fees to a parent company  granted the appropriate to market a certain product in a space  Cooperative – owned and also operated by a team for common benefit  Consumer – offer merchandise to members at a cheaper price  Service – carry out a organization such as a credit union  Producer – agricultural industries, help to market commodities

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20  Do not seek to earn a profit, benefit culture  Professional organizations – help world in particular abilities  Business organizations – promote service interests in a location  Trade Associations – promote sectors  Labor Unions – improve functioning problems

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