If a corporation does business outside the nation in which it incorporated it

If a corporation does business outside the nation in

This preview shows page 21 - 26 out of 42 pages.

If a corporation does business outside the nation in which it incorporated, it is called an alien corporation . 20
Image of page 21
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
Image of page 22
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
Image of page 23
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
Image of page 24
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.
Image of page 25
Image of page 26

You've reached the end of your free preview.

Want to read all 42 pages?

  • Spring '14
  • BernardE.Imhoff
  • Business, Corporation, Types of companies

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes