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Corporations In Our Community

Corporations In Our Community. Corporations can either be private or public Private corporation A few people control all shares Stocks are not available for sale on a stock exchange Public corporation

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Corporations In Our Community

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  1. Corporations In Our Community

  2. Corporations can either be private or public • Private corporation • A few people control all shares • Stocks are not available for sale on a stock exchange • Public corporation • Raises money by selling stocks on the stock exchange. Purchasers become owners of the business

  3. Many types of corporations: • Crown Corporation • Non-profit Corporation • Multinational Companies

  4. CrownCorporation • Operated by provincial or federal government (Via Rail, Canada Post, CBC) • The Queen, or “Crown”, is the sole shareholder.

  5. Non-Profit Corporations • Provide a service and are not concerned with making a profit. ( ex: church, hospital, charity) • Many non-profit organizations are affiliated with international organizations. Nonprofit organizations are also referred to as nongovernmental organizations or NGOs. ( ex: Invisible Children)

  6. Multinational Corporations

  7. Multinational Corporation or Company (MNC) • Organization that conducts business in several countries. • MNCs usually consist of a parent company in a home country and divisions or separate companies in one or more host countries. ( ex: Exxon)

  8. Multinational Corporation or Company (MNC) • MNCs get involved in global activities to take advantage of business opportunities in other geographic areas. • The potential for MNCs to sell goods or services in other countries is the result of a competitive advantage which may be the result of technology, lower costs, location, or natural resources.

  9. Characteristics of MNC’s 1. Worldwide Market View - they view the entire world as their potential market 2. Standardized Products - they look for similarities among markets to offer standardized products whenever possible. 3. Culturally-Sensitive Hiring - they have consistent hiring policies throughout the world; they recruit managers internationally rather than just from the country of operation. 4. International and Local Perspective - these companies distribute, produce, price, and promote with both an international outlook and a local perspective.

  10. Concerns About MNC’s • As a foreign company becomes a major business, the MNCs economic power can make a host country dependent. - Workers will depend on the MNC for jobs. - Consumers will depend on the company for needed goods and services. - The MNC could become a country’s entire economic entity.

  11. Concerns About MNC’s • If #1 occurs, then the MNC could control or influence the country’s politics. The company may require certain tax laws or regulations that only benefit the powerful MNC.

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