5.2 Business Organizations

By: Dylan Dow3rd Period3/6/09

Corporation• A corporation is a legal entity separate from the

persons that form it., it is also owned by stockholders. In British tradition it is the term designating a body corporate, where it can be either a corporation sole (an office held by an individual natural person, which is a legal entity separate from that person) or a corporation aggregate (involving more persons).

• One example of a corporation would be Harvard College, the oldest corporation in the western hemisphere.

• Closely held corporations do have some advantages over publicly traded corporations

• If they are not closely held, then they can be at a disadvantage.

Franchises• Two different Franchises are Dunkin

Donuts and McDonalds.• One advantage is that the company can

gain a lot more money if they expand• A disadvantage could be that the

company could lose a lot of money investing in the franchises.

Mission Statement• A mission statement declaration of the

general objectives and principles of operation of an organization

• Google's mission is to organize the world's information and make it universally accessible and useful.

Short Term & Long Term Goals• Setting short term and long term goals

will give your employees a deadline on when they need to have their work done. It will also give them the opportunity to feel better when they succeed in those goals.

Common Company Procedures• Procedures are descriptions of the way

work is to be done. • Responsibility, Authority, and

Accountability are three that are common in schools.

Organization Chart• An organization chart is a diagram that

shows the structure of an organization, classifications of work and jobs, and the relationships among those classifications.

Organizational Charts #2• In a Functional Organizational Structure

work is arranged within main business functions such as production, operations, marketing, and human resources.

• In a matrix organizational structure work is structured around specific projects, products, or customer groups.