If a corporation does business outside the nation in which it incorporated, it is called an alien corporation . 20
American Companies with More than Half of Their Revenues from Outside the United States: Company/Description • Caterpillar Inc. : Designs, manufactures, markets, and sells machinery, engines, and financial products • Dow Chemical: Manufactures chemicals, with products including plastics, oil, and crop technology • General Electric: Operates in the technology infrastructure, energy, capital finance, and consumer and industrial fields, with products including appliances, locomotives, weapons, lighting, and gas • General Motors: Sells automobiles with brands including Chevrolet, Buick, Cadillac, and Isuzu • IBM: Conducts technological research, develops intellectual property including software and hardware, and offers consulting services • Intel: Manufactures and develops semiconductor chips and microprocessors • McDonald’s: Operates second-largest chain of fast-food restaurants worldwide after Subway 21
• Nike: Designs, develops, markets, and sells athletic shoes and clothing • Procter & Gamble: Sells consumer goods with brands including Tide, Bounty, Crest, and Iams • Yum! Brands: Operates and licenses restaurants including Taco Bell, Kentucky Fried Chicken, and Pizza Hut 21
Not all corporations, large or small, are publicly traded, some are privately owned. A private corporation is owned by one or a few people who are closely involved in managing the business. This group of people, usually a family, own all the corporation’s stock and none is sold to the public. Privately owned companies are not required to disclose financial information to the public. Private corporations who wish to expand operations and need additional capital to do this, may have to obtain financing by “going public.” This is facilitated through what is called an initial public offering , often referred to as an IPO. When this occurs, the private corporation is taken public; that is, it becomes a publicly traded corporation. 22
A public corporation is one whose stock is available to anyone who may buy, sell, or trade. A public corporation must provide financial information to the public. There are two types of public corporation: the quasi-public corporation and the non-profit corporation. The quasi-public corporation is owned and operated by the federal, state, or local government. Usually, the focus of this type of corporation is to provide a service to citizens, such as the U.S. Postal Service. The final type of corporation that we consider in this chapter is the nonprofit corporation. Nonprofit corporations are similar to quasi-public corporations as they focus on providing services, not a profit. The difference, and it is an important one, is that nonprofit corporations are not owned by the government.
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