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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: • Close Corporation vs. Public (or Open) Corporation • Limited Liability v. Unlimited Liability • Corporate Income Tax vs. Individual Income Tax (“double taxation”) • Ability to raise financial capital • Size and efficiency • Ease of transferring ownership • Amount of control the owners have over the direction of the business

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

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

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

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