2) Companies

Chapter 1: The World of Work

What’s a company? True or False?

A company can be created by one person

True

A company’s aim is to make profit

True

A company is considered as a person

True

A company is the same thing as a society

False

How much do you know about Apple Inc?

• Founded : in 1976 in California

• Industry: Computer hardware and software /consumer electronics

• Products: Computers, smartphones, tablets

• Slogan: Think Different

• Type of company: Corporation

A corporation:

corporations video.flv

Structure of a corporation

Shareholders

Management

Board of Directors

Day to day operations

Identifies and manages corporate risks

Oversees management

Makes decisions in the interests of the shareholders

Elect the directors

Invest in the company

Apple’s Organizational Structure in 2010

: Apple,Inc in Numbers

1977

Ronald Wayne sells his shares of Apple for $800

(worth over $35B today)

408

Number of retail stores established in 14 countries

60,400

Number of employees

$681.3

Price of a share

$ 42B

Net profit in 2012

$ 337.2 Billion

Market Value:

Apple Inc. is today the most valuable company in the world

Other types of companiesin the USA

The Limited Liability Company (LLC)

Characteristics:

• Well suited for a single owner

• Flexible in management

• Less administrative paperwork

• Protects from personal loss

• More taxes

The Sole Proprietorship

Characteristics:

• is owned and run by one person

• No legal distinction between the owner and the business

• Few government rules and regulations

• High degree of flexibility

• No protection against personal loss

• Limited lifetime

The Partnership

Characteristics:

• Is owned and run by several people

• Same advantages and drawbacks as the Sole Proprietorship

The Joint Venture

Characteristics:

• Two or more companies form a new company with specific objectives

• share their assets for the new one

• Share risks and profits

• Equity ownership

• High rate of dissolution (within 4 years)