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What is a stock? What does this piece of paper represent? Why do people purchase stocks?

What is a stock? What does this piece of paper represent? Why do people purchase stocks?. https://finance.yahoo.com/quote/MCD?p=MCD&.tsrc=fin-srch. Lesson 1.5 Forms of Business Organization.

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What is a stock? What does this piece of paper represent? Why do people purchase stocks?

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  1. What is a stock? What does this piece of paper represent? Why do people purchase stocks? https://finance.yahoo.com/quote/MCD?p=MCD&.tsrc=fin-srch

  2. Lesson 1.5Forms of Business Organization Essential Questions: How do corporations differ from sole proprietorships and partnerships? How do stockholders exert control over corporate leadership?

  3. Economics Types of Business Organization

  4. Key Concepts: • How does a “close corporation” differ from a “public (or open) corporation”? • What does it mean that a corporation has “limited liability? Why do proprietorships and partnerships not have this advantage? • How is corporate income taxed twice? • Why does a corporation have a greater ability to raise financial capital? How does each business organization raise financial capital? • What is the relationship between the size and efficiency of a business? Which business type would you expect to be more efficient? Why? • Why is it easier to transfer ownership of a corporation that the other types of businesses? How would you go about selling your ownership? • Why do the owners of a corporation have less control over the direction of the business?

  5. How does a corporation raise financial capital? Issue stock certificates, representing part ownership

  6. How does a corporation raise financial capital? Issue stock certificates, representing part ownership Sell stocks to investors to raise money for start-up costs

  7. How does a corporation raise financial capital? Issue stock certificates, representing part ownership Sell stocks to investors to raise money for start-up costs Use the money to build a factory, buy machinery, and hire employees

  8. How does a corporation raise financial capital? Issue stock certificates, representing part ownership Sell stocks to investors to raise money for start-up costs Use the money to build a factory, buy machinery, and hire employees In 2004, Google Inc. (now known as Alphabet Inc.) sold over 19 million shares at an IPO (Initial Public Offering) of $85 per share, raising $1.67 billion In 2012, Facebook sold over 484 million shares at an IPO (Initial Public Offering) of $38 per share, raising $18.4 billion

  9. How does a corporation raise financial capital? Issue stock certificates, representing part ownership Sell stocks to investors to raise money for start-up costs Use the money to build a factory, buy machinery, and hire employees Why would investors buy shares of stock?

  10. How does a corporation raise financial capital? Issue stock certificates, representing part ownership Sell stocks to investors to raise money for start-up costs Use the money to build a factory, buy machinery, and hire employees Why would investors buy shares of stock? The corporation may pay dividends to stock holders Stock holders can sell their shares to someone else for a capital gain https://finance.yahoo.com/

  11. Typical Corporate Hierarchy Owners/Shareholders (one vote per share) Board of Directors President/CEO Vice President (Sales) Vice President (Production) Vice President (Finance) Workers

  12. The Hershey Company http://www.thehersheycompany.com/

  13. Lesson 1.5Forms of Business OrganizationSummarizer: Whether it’s organized as a sole proprietorship, a partnership, or a corporation, what benefits does business start-up and entrepreneurial spirit provide for the U.S. economy? Respond in 4 to 6 lines

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