Corporate Forms of Business Ownership

Corporate Forms of Business Ownership
Chapter 6

10/6/2008
Bell Activity

Stock / Corporation

What does this mean or signify?People who own stock own a part of a corporation.You can own some corporations for as low as $20.

Motivation
What are the largest businesses in NWA?

Are they corporations?

Do you believe that lawyers and doctors should be able to incorporate?

Why or why not?

Corporations have limited liability.

New Terms Preview
Corporation CharterStockholdersShares DividendsBoard of DirectorsOfficersCapital StockProxyCooperative
Close CorporationOpen corporationProspectusJoint ventureVirtual corporationLimited liability co.Non profit corporationQuasi public corporation

Objectives
Explain the basic features of a corporation.Describe how a corporation is formed and organized.List some of the major advantages and disadvantages of the corporate form of business.Describe several specialized forms of business organizations.

What are we really learning??

BASIC FEATURESOF CORPORATIONS
CharterOfficial documentStockholdersOwners of a corporation. Shares equal parts.Dividends profits distributedDirectorsRuling body of corporation (10-25) Officers