Bell-Ringer What # of Corporations control 90% of U.S. Media? Let’s examine… https://www.businessinsider.com/these-6-corporations-control-90-of-the-media-in-america-2012-6 What does this tell us about Corporations?

Types of Businesses

Sole Proprietorship Business that is organized by one single owner. Negatives Unlimited liability – owner is responsible for all debts Limited Financial Capital, money needed to run business or allow it to grow Employees hard to attract, prefer larger businesses that offer other incentives Positives Easiest type to organize Owner has the power to make decisions Profit does not have to be shared No Corporate Income Tax!

Partnership A legal joining of two or more individuals in a business Partnership A legal joining of two or more individuals in a business. The least common form of business organization. Formed by a legal agreement called the articles of partnership. Positives Additional financial capital Can share expensive start- up costs No Corporate Income Tax! Each partner brings specific talents Slightly larger size--- Increased Efficiency Negatives Unlimited liability – financially responsible for personal as well as business debts of partners Legal structure is complicated

Articles of Partnership Identifies how much money each of you will contribute and what role each partner will play in the business Clarifies how you will share profits or losses Describes how to add or remove partners, or even how to break up business if you want to close it down If a new partner joins/one leaves, new Article needs to be drawn up Cruzan Rum- http://historyofcruzanrum.com/wp- content/uploads/2014/03/Articles-of-Partnership0001.jpg

Corporation A business recognized by law: rights & responsibilities of an individual; own property, pay taxes, sue or be sued. Corporations are formed through a charter granted by the government. Positives Raise $ through the sale of stocks/bonds Limited liability – only responsible for what you invest in company Professional managers Ownership transferred easily-sell shares in one corp, buy another Negatives Expensive & complex to start Owners have little control/decision making Government regulation/corporate income taxes Most difficult to organize

Corporations 1/5 of all businesses are Corporations Begin by attaining a charter, or government document granting permission to organize Includes the name, purpose, address, and other features of the business Specifies the amount of stock, or ownership shares of the corporation, that will be issued

Corporations Stockholders-People who buy stock and thus become part owners of the corporation Corporation uses money received from selling the stock to set up and run the business Elect a Board of Directors to act on their behalf Board hires managers to run the corporation on a daily basis

The Largest Corporations Some Corporations are larger that the economies of many countries Of the world’s largest 150 economic entities, 95 are Corporations (2005) Ranking based on corporations by revenue and countries by GDP Wal-Mart, world’s largest, ranks 22nd, Exxon Mobil 24th, General Motors 33rd Larger than the domestic economies of Finland (34th), Ireland (35th), and Argentina (48th)

Corporate Income Tax

Should we lower/eliminate Corporate Income Tax? Let’s watch this video: https://www.youtube.com/watch?v=tsdzfWpgxFc Are Corporations people? Are they treated as such?- https://www.youtube.com/watch?v=E2h8ujX6T0A Pros & Cons -http://corporatetax.procon.org/ Average tax rate for U.S. Citizens

NON-PROFIT ORGANIZATION An organization that operates like a business to support its members. Structured much like a corporation, but do not operate for a profit. Non-profits seek to provide a service to its members, or the community in general. Examples – Churches, YMCA, State Employees Credit Union

Cooperative Voluntary association of people formed to carry on an economic activity that benefits its members Consumer Cooperatives Buy bulk amounts of goods on behalf of their members Members usually help keep the cost of operation down by devoting several hours a week or month to the operation Service Cooperatives provide services, such as insurance and credit, rather than goods to their members Producer Cooperatives Helps members promote or sell their products Farmers Cooperatives help members sell their crops directly to central markets or to companies that use the products

Review Proprietorship---Advantages, Disadvantages Partnership---Advantages, Disadvantages Corporations---Advantages, Disadvantages Do Corporations deserve to be treated as people? What is the Corporate Income Tax? Pros? Cons?