1. Bell-Ringer What # of Corporations control 90% of U.S. Media?
Let’s examine…
What does this tell us about Corporations?

2. Types of Businesses

3. 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!

4. 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

5. 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- content/uploads/2014/03/Articles-of-Partnership0001.jpg

7. 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

8. 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

9. 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

11. 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)

16. Corporate Income Tax

17. Should we lower/eliminate Corporate Income Tax?
Let’s watch this video:
Are Corporations people? Are they treated as such?-
Pros & Cons -
Average tax rate for U.S. Citizens

18. 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

19. 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

20. 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?