1. CORPORATIONS MERGERS MULTINATIONALS

2. CORPORATIONS MOST COMPLEX BUSINESS ORGANIZATION LEGAL ENTITY OWNED BY STOCKHOLDERS STOCK – CERTIFICATE OF OWNERSHIP 20 % OF ALL BUSINESSES ARE CORP. 90 % OF PRODUCTS SOLD IN U.S.

3. TYPES OF CORPORATIONS 1) CLOSELY HELD CORPORATIONS o ISSUE STOCK TO ONLY A FEW o USUALLY FAMILY MEMBERS o RARELY TRADE STOCK o PASSED ON o ALSO KNOWN AS PRIVATELY HELD CORPORATIONS 2)PUBLICLY HELD CORPORATION o STOCK AVAILABLE TO EVERYONE o SOLD ON THE STOCK MARKET

4. CORPORATE STRUCTURE OWNERS – STOCKHOLDERS BOARD OF DIRECTORS – ELECTED BY STOCKHOLDERS CORPORATE OFFICERS MANAGERS EMPLOYEES

5. ADVANTAGES LIMITED LIABILITY FOR OWNERS o LOSE ONLY INVESTED MONEY TRANSFERABLE OWNERSHIP o SELL STOCK ABILITY TO ATTRACT CAPITAL o BOND – CONTRACT TO REPAY BORROWED MONEY LONG LIFE

6. DISADVANTAGES EXPENSIVE – DIFFICULT START UP o CERTIFICATE OF INCORPORATION  STATE GOVERNMENT LICENSE DOUBLE TAXATION o CORPORATIONS PAY TAX ON PROFIT o STOCKHOLDERS PAY TAX ON DIVIDENDS LOSS OF CONTROL o PROTECTING JOBS NOT “BEST INTEREST” REGULATIONS o REPORTS - SEC

7. CORPORATE COMBINATIONS HORIZONTAL MERGER o FIRMS COMPETING IN SAME MARKET o 1998 – CHRYSLER & DAIMLER BENZ VERTICAL MERGER o FIRMS INVOLVED IN DIFFERENT STAGES OF PRODUCTION CONGLOMERATES o FIRMS TOTALLY UNRELATED

8. MULTINATIONAL CORPORATIONS LARGE CORPORATIONS – SELL PRODUCTS WORLDWIDE ADVANTAGES? DISADVANTAGES?