2) Companies

2) Companies Chapter 1: The World of Work1What is a company? Definition:It is a business organization whose aim is gaining profits through the production and retailing of products or services. It can be founded by one person or a collection of people. Whats a company? True or False?A company can be created by one personTrueA companys aim is to make profitTrueA company is considered as a person TrueA company is the same thing as a societyFalseThe CorporationCharacteristics:Is distinct from its owners Is managed by a Board of DirectorsHas transferable ownership rightsCan acquire capital by selling sharesHas a continuous life

Corporation managementseparation of ownership and managementGovernment regulationsAdditional taxes

Structure of a corporation:

Structure of a corporationDay to day operations

Identifies and manages corporate risks

Oversees management

Makes decisions in the interests of the shareholdersElect the directors

Invest in the companyThe Limited Liability Company (LLC)Characteristics:

Well suited for a single ownerFlexible in managementLess administrative paperworkProtects from personal loss

More taxes

The Sole ProprietorshipCharacteristics:is owned and run by one personNo legal distinction between the owner and the businessFew government rules and regulationsHigh degree of flexibility

No protection against personal lossLimited lifetime

The PartnershipCharacteristics:

Is owned and run by several peopleSame advantages and drawbacks as the Sole Proprietorship

The Joint Venture Characteristics:

Two or more companies form a new company with specific objectivesshare their assets for the new one (increased capacity)enter new markets Share risks and profits

High rate of dissolution (within 4 years)No liability protectionLimited lifetime

What is a company logo?Definition:

A company logo is a vital way of communicating about what the company is all about. It also helps a company stand out from its competitors so it has to be unique, it has to create an emotion and it has to send the right message.

Company Logos

Understanding company logos

Logo Disasters