Business Structures The most common forms of business organizations are sole proprietorships, partnerships, corporations, and hybrids. There are advantages and disadvantages to each type of organization involving ease of formation, tax requirements, and personal liabilities. The most common type of…
Learning Outcomes By the end of this section, you will be able to: Important Differences among Domestic, International, and Global Organizations If a company becomes global or multinational in scope, fundamental analysis of the organization by the investment community can…
Learning Outcomes By the end of this section, you will be able to: Investor Relations Within the general field of corporate public relations is a specific subdivision referred to as investor relations (IR). IR involves elements of communication, marketing, and finance…
Learning Outcomes By the end of this section, you will be able to: Agency Problems and Issues Agency problems refers to conflicts that occur when an agent (manager) who is entrusted with following the interests of the principal (shareholder or owner) of an organization abuses…
Learning Outcomes By the end of this section, you will be able to: Functions of a Board of Directors A board of directors is a group of people who are elected to represent shareholders, and these directors are then ultimately…
Learning Outcomes By the end of this section, you will be able to: Stakeholders A stakeholder is any person or group that has an interest in the outcomes of an organization’s actions. Stakeholders include employees, customers, shareholders, suppliers, communities, and governments. Different…
Learning Outcomes By the end of this section, you will be able to: The Most Common Types of Business Organization The functions of most executive management teams are very similar for most businesses, and they will not differ in any…
Figure 2.1 The legal structure of any business will have a substantial impact on its operations. (credit: modification of work “New Board Room at 2 Broadway” by Metropolitan Transportation Authority/Patrick Cashin/flickr, CC BY 2.0) Chapter Outline 2.1 Business Structures 2.2 Relationship between Shareholders and…
What Is Finance? Finance is the study of the trade-off between risk and expected return. There are three broad areas of finance: business finance, investments, and financial markets and institutions. The Role of Finance in an Organization The accounting department…
Learning Outcomes By the end of this section, you will be able to: Many students don’t have a choice between saving and spending. College is expensive, and it is easy to spend every dollar you earn and to borrow to…