1. CORPORATIONS!!!
Proctor & Gamble

2. A business that is owned by individual stock holders
What is a corporation?
A business that is owned by individual stock holders

3. Then you are a stock holder and part owner of the business!
If you own a share of stock
Then you are a stock holder and part owner of the business!

4. How much liability would you have if this happened?
Stock holders have limited liability! You only lose the money that you invest.

5. What is a corporation?
A business that is owned by individual stock holders
Considered a legal entity
They are legally treated like people!
They can…

6. Pay taxes
Make contracts
Sue other parties

7. I’m so suing that guy…

8. Corporate Structure Board of Directors Corporate Officers
Managers & Employees

9. Board of Directors
Approves decisions for corporation and manages executives
Stockholders vote who will be the directors

10. Corporate Officers Appointed by the board of directors
They run the corporation
Usually called the Chief Executive (CEO)

11. Managers and Employees
Everyone else working for the corporation

12. Top 10 Biggest Corporations
Wal-Mart (USA)
State Grid (China)
Sinopec Group (China)
China National Petroleum (China)
Toyota (Japan)
Volkswagen (Germany)
Royal Dutch Shell (Netherlands)
Berkshire Hatahway (USA)
Apple (USA)
Exxon Mobil (USA)

13. Types of Corporations Closely/Privately Held Publicly Held
Only a few people own stock, usually family members
Stock is sold on the open market

14. Corporate Combinations

15. Corporate Combinations
When corporations merge (combine) with another firm
Usually by “buying out” the other firms
Three Types….

16. Horizontal Mergers
Merges with firms competing in the same market.

17. Vertical Mergers
Merge with firms that are involved in different stages of making the same product.

18. Merge with firms that make unrelated products
Conglomerate
Proctor & Gamble
Merge with firms that make unrelated products

19. Multinational Corporations (MNC’s)

20. Multinational Corporations
Large corporation that produces and sells its goods and services throughout the world.
Leads to globalization
Connecting countries economically by opening trade

21. Multinationals have positive and negative effects on the world

22. Globalization
Look at the tags of the clothes you are wearing and the products you currently have with you. Where are they made?

23. Walmart: Good Or Bad
Facts about Walmart that-show-just-how-massive-walmart-really- is#.etaYYbYJWVideo
Video ows/walmart/view/