Business Organization
Purpose and forms of business organizations Sole proprietorship General partnerships Limited partnerships Syndicates Business trusts Corporations as business units General aspects of corporations Incorporation of companies Dissolution of corporations Stock and dividends Stockholders Meetings of stockholders Directors and officers Intercorporate relations Consolidations, sales and leases of assets Holding companies Illegal combinations
If you are in business for yourself, or in some way become interested in a growing business, there is nothing that is of greater interest than your rights and the rights of other men who are in the concern.
The application of the correct principles of production, marketing, financing and accounting are necessary to insure success, as they determine the profits of the business as a whole. Every man goes into business to secure more income for himself, and the amount of his own income will depend, not only on the amount of the profits of the whole business, but on his own proportionate share of these profits. The division of the profits into shares depend almost entirely on the form of organization.
Moreover, when men enter business they hazard not only their time and a definite amount of wealth in the enterprise, but perhaps other wealth that was intended to be kept separate. Indeed, embarking on a business venture may be but the beginning of the loss of the income of future years when all chance of profits has ceased and the business represents nothing but a lot of debts that remain to be liquidated.
Risk is an important element that is varied by the form of organization selected. This section traces briefly the rise of the corporation through the individual enterprise, the partnership and the joint stock company, and states the advantages and disadvantages of each of these forms of conducting business, as well as those of the corporation. This section of the Course constitutes the first step in the study of corporate finance.