1The three types of emissions that Corporation track:
direct emissions from sources owned or controlled by a company.
indirect emissions from purchased electricity, steam, heat, and cooling.
all other emissions associated with a company's activities.
2Ethical norms that apply to all people across a broad spectrum of situations.
. Code of Ethics:
3.How do companies enforce their codes of conduct?:
provide employees with effective communication channels for reporting violations.
4What factors influences a person’s ethical choices?
Who you are as a human being, your family, and your culture all play a role in shaping your ethical standards.
5What responsibilities do stakeholders have and to whom?
Responsibility to their employees
Responsibility to the customers
Responsibility to Investors:
Responsibility to the Community:
Responsibility to the Environment:
6by comply with laws that include equal opportunity, workplace safety, minimum-wage and overtime requirements, protection from sexual harassment, and family and medical unpaid leaves.
Responsibility to their employees
7 by providing a quality product at fair prices
Responsibility to the customers
8a widely accepted social movement, suggests that consumer rights should be the starting points. In the early 1960s it was defined by President Kennedy.
Consumerism,
9Consumerism define by JFK defined these rights (4)
The Right to Be Safe:
The Right to be informed:
he Right to Choose:
The Right to be Heard:
10The primary responsibility of business to investors is clearly to make money--to create an ongoing stream of profits. Beyond meeting legal requirements, companies have the responsibility of being honest, and spending money wisely.
Responsibility to Investors:
11Beyond increasing everyone's standard of living, businesses can contribute to society in two main ways: philanthropy and responsibility.
Responsibility to the Community
12Many businesses embraced the idea of sustainable development doing business to meet the needs of the current generation without harming the ability of future generations to meet their needs.
Responsibility to the Environment:
13Single owner who manages the company
Sole proprietorship:
14Ease of Formation, Retention of Control, Pride of Ownership, Retention of Profits, Possible Tax Advantage
Sole proprietorship Advantages:
15Limited Financial Resources, Unlimited Liability Limited Ability to Attract and Maintain Talented Employees, Heavy Workload and Responsibilities, Lack of Permanence
Sole proprietorship Disadvantages
16All partners Take an active role in managing the business. Each partner also has unlimited liability for claims against the firm. There is no limit of who can participate in this but it is mostly just two.
General partnership:
17Ability to Pool Financial Resources, Ability to Share Responsibilities and Capitalize on Complementary Skills ,Ease of Formation, Possible Tax Advantages and Only the partners' income is taxed
General partnership Advantages
18Unlimited Liability, Potential for Disagreements, Lack of Continuity and Difficulty in Withdrawing from a Partnership
General partnership Disadvantages:
19includes at least one general partner and at least one limited partner. Both types of partners contribute financially to the company and share in its profits. But in other respects they play different roles.
Limited partnership
20Business is considered a legal entity that is separate and distinct from its owners. It is created by filing articles of incorporation and paying a fee of incorporation to the appropriate state agency. Owners of s corporations have limited liability.
Corporation:
21It is a hybrid form of business ownership that is similar in some respects to a corporation. The LLC is considered a legal entity separate from its owners. The LLC offers its owners limited liability for the debts of the business. It also offers more flexibility than a corporation in terms of tax treatment.
Limited Liability Company (LLC)
22Limited liability, tax pass-through, simplicity and flexibility in management and operation and flexible ownership
Limited Liability Company (LLC) Advantages
23complexity of formation, annual franchise tax, foreign status in other states, limits on types of firms that can from LLCs, difference in state laws
Limited Liability Company (LLC) Disadvantages
24 Who are the owners of a C Corporation?
Stockholders
25A licensing arrangement under which a franchisor allows franchisees to use its name, trademark, products, business methods, and other property in exchange for monetary payments and other considerations.
Franchising
26A type of franchising arrangement in which the franchisor makes a product and licenses the franchisee to sell it.
Distributorships:
27 A broad franchise agreement in which the franchisee pays for the right to use the name, trademark, and business and production methods of the franchisor.
Business format franchise
28Less risk, training and support, brand recognition, easier access to funding
Franchising advantages:
29cost, lack of control, negative halo effect, growth challenges, restrictions, sales, and poor execution
Franchising disadvantages:
30The contractual arrangement between a franchisor and franchisee that spells out the duties and responsibilities of both parties.
franchise agreement.
31Terms and conditions, fees and other payments, training and support, specific operational requirements, conflict resolution and assigned territory
Key elements of franchise agreements:
32The franchisee’s rights to use the franchisor’s trademarks, patents, and signage, and any restrictions on those rights. It also covers how long the agreement will last and under what terms (and at what cost) it can be renewed
Terms and Conditions:
33 A corporate restructuring in which one firm buys another.
Acquisition:
34A corporate restructuring that occurs when two formerly independent business entities combine to form a new organization.
Merger:
35A combination of firms in the same industry with the goal of increasing size and market power within the industry and improving efficiency by eliminating duplication of facilities and personnel.
Horizontal Merger
36A combination of firms that are at different stages in the production of a good or service, creating a “buyer-seller” relationship with the goal of provide tighter integration of production and increased control over the supply of crucial inputs.
Vertical Merger:
37a combination of firms in unrelated industries with the goal of reducing risk by making the firm less vulnerable to adverse conditions in any single market
Conglomerate merger:
38The transfer of total or partial ownership of some of a firm’s operations to investors or to another company there two types of this spin offs and crave outs.
Divestitures:
39occurs when a company issues stock in one of its own divisions or operating units and sets it up as a separate company.
spin-off",
40 is like a spin-off in that the firm converts a particular unit or division into a separate company and issues stock in the new corporation; however, instead of distributing the new stock to its current stockholders, it sells the stock to outside investors.
"carve out"
41What was the motivating factor that motivated other states beside Wyoming
and Florida to allow LLC’s?
Because of the foreign status in the states they do not originated from they get additional revenue from fees and taxes imposed on them along with the annual franchise tax put on them.
42. Motivating factors for Entrepreneurs (4):
Independence, Flexibility, Challenge, and Survival.
43 Factors that determine Entrepreneurship rate (3):
Per Capita Income, Opportunity Costs,
Cultural/Political Environment.
44Treat to small business (5):
High Risk of Failure
Lack of Knowledge and Experience
Too Little Money
Bigger Regulatory Burden. Complying with federal regulation can be overwhelming for small firms.
Higher Health Insurance Costs.
45Pros of staring a business from scratch (2)
It’s all you: your concept, your decisions, your structure, and so on.
You don’t have to deal with the prior owner’s bad decisions.
46Cons of staring a business from scratch (4)
It’s all you. That’s a lot of pressure.
It takes time, money, and sheer sweat equity to build a customer base.
Without a track record, it’s harder to get credit from both lenders and suppliers.
From securing permits to hiring employees, the logistics of starting a business can be challenging.
47Pros of bying an established business (3)
The concept, organizational structure, and operating practices are already in place.
Relationships with customers, suppliers, and other stakeholders are established.
Getting financing and credit is less challenging.
48Cons of bying an established business (2)
Working with someone else’s idea can be a lot less fun for some entrepreneurs.
You may inherit old mistakes that can range from poor employee relations to pending lawsuits.
49Pros of buing a franchise (5)
In most cases, you’re buying your own piece of a well-known brand and proven way of doing business.
Typically, management expertise and consulting come with the franchise package.
Franchisers occasionally offer not just advice but also the financing that can make the purchase possible.
These advantages add up to a very low 5% first-year failure rate.
50Cons of buing a franchise (3)
You have less opportunity for creativity since most agreements tie you to franchise requirements.
If something goes wrong with the national brand (e.g., E. coli at a burger joint), your business will suffer, too.
The initial purchase price can be steep, and that doesn’t include the ongoing percent-of-sales royalty fee.
51a. Gain Experience in the field
b. Learn from others
c. Educate yourself
d. Access SBA Resources
e. Develop a Business Plan
Strategies to help you succeed in your small business over the long term.
52Funding Options for Small Businesses (5)
Personal resources
laons
crowdunfing
Angle investors
venture captial
53Raising money from a large number of investors via the internet
Crowdfunding
54Borrowing money from wealthy individuals who invest in start-up
companies to make money.
Angel Investors
55 Fund high-potential, new companies in exchange for a share of
Ownership.
Venture Capital
56Entrepreneurial Characteristics (6)
Vision
Self-Reliance – Internal locus of control and external locus of control
Energy
Confidence
Tolerance of Uncertainty
Tolerance of Failure