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FORMS OF BUSINESS ORGANI-ZATIONS. 3.1 NOTES. CORPORATION FUN FACT. Where does the word “corporation” come from? 190 C.E. – A founder of the Christian church named Tertullian was the first to use it in writing. It comes from the Latin word corporare which means “to make into a body .”.
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FORMS OF BUSINESS ORGANI-ZATIONS 3.1 NOTES
CORPORATION FUN FACT • Where does the word “corporation” come from? • 190 C.E. – A founder of the Christian church named Tertullian was the first to use it in writing. • It comes from the Latin word corporare which means “to make into a body.”
Corporations • $tock$ • Dividends: $ given back to stockholders from profitable companies • 2 examples of quarterly dividends • http://finance.yahoo.com/q?s=so (historical prices) • http://finance.yahoo.com/q?s=XOM
KEY WORDS WHAT IS (A)… • BOND? • PRINCIPAL? • INTEREST? • LIMITED LIABILITY? • the corporation itself, not its owners, is fully responsible for its debts and obligations • How is limited liability an advantage for corporations? • PROXY? • A ballot that give stockholder’s representative the right to vote on corporate matters
When a corporation wants to introduce a potentially profitable but risky product, it frequently sets up a separate company that has its own corporate structure. WHY do you think the corporation does this?
It is common for countries/states/cities will often try to attract a corporation to build its headquarters in their state by offering tax credits or tax reduction. Why? HOW?
Another fun fact • True or False: • Between 1998 and 2003, the United States’ share of worldwide internet commerce INCREASED. • In 1998, the US accounted for approx. 75% of all Internet-based commerce, compared with about 50% in 2003. • What are some examples of U.S.-based companies that do business online? • What type(s) of businesses are they?