Business Organizations Business Organizations Slideshow 2Slideshow 2

Marissa DoriaBlock 3

CorporationCorporation

Separate legal entity formed by documents filed with your state

An example would be TargetAdvantage: Protect the liability of

stockholders to only the amount of money they have invested

Disadvantage: More difficult to form than either proprietorships or partnerships

FranchisesFranchises

Written contract granting permission to operate a business to sell products and services in a set way

Advantage: Expands a business using the investments of others while maintaining control over the name, product quality, and operating procedures

Disadvantage: Pay a fee and percent age of the profits to the franchiser in return for operating assistance

Example: Chili’s

Mission StatementMission Statement

Purpose of a Mission Statement for a Company: The direction for a business comes from its mission statement

Mission Statement for Google: Organize the world's information and make it universally accessible and useful

Purpose of Short Term and Long Purpose of Short Term and Long Term GoalsTerm Goals

So your employees are aware of what is expected of them and so they realize what they have ahead of them

Company ProceduresCompany Procedures

Company Procedures—Descriptions of the way work is to be done

Three Procedures at a School—Teach students, be fair to all students and be on time

Organization ChartOrganization Chart

Organization Chart—Diagram that shows the structure of an organization, classifications of work and jobs, and the relationships among those classifications.

Ex—Chores Chart, Calendar

Functional Organizational Chart—Work is arranged within many business functions such as production, operations, marketing, and human resources

Matrix Organizational Structure—Work is structured around specific projects, products, or customer groups