Download - Ch05
© 2011 South-Western | Cengage Learning
Structures of International Business
Organizations
5-15-1 Forms of Business Ownership
5-25-2 Operations of Global Businesses
5-35-3 Starting Global Business Activities
CHAPTER 5
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 2© 2011 South-Western | Cengage Learning
5LESSON 5-1
Forms of Business Ownership
GOALSGOALSDescribe the advantages and
disadvantages of a sole proprietorship.
Describe the advantages and disadvantages of a partnership.
Explain the characteristics of a corporation.
Name other forms of business ownership.
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 3© 2011 South-Western | Cengage Learning
5Percentage of U.S. Businesses by Method of Organization
Sole Proprietorships, 72% Partnerships, 9% Corporations, 19%
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 4© 2011 South-Western | Cengage Learning
5
The Sole Proprietorship
Advantages Ease of startingFreedom to make
business decisionsOwner keeps all profitsPride of ownership
DisadvantagesLimited sources of
fundsLong hours and hard
workUnlimited risksLimited life of the
business
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 5© 2011 South-Western | Cengage Learning
5
Partnership
Advantages Ease of creationAdditional sources of
fundsAvailability of different
talents
DisadvantagesPartners are liableProfits are shared
among several ownersPotential for
disagreement among owners
Business can dissolve suddenly
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 6© 2011 South-Western | Cengage Learning
5
Corporation
Advantages More sources of fundsFixed financial liability
of ownersSpecialized
managementUnlimited life of the
company
DisadvantagesDifficult creation
processOwners have limited
controlDouble taxation
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 7© 2011 South-Western | Cengage Learning
5Percentage of Sales by Method of Businesses Organization
Sole Proprietorships, 4% Partnerships, 13% Corporations, 83%
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 8© 2011 South-Western | Cengage Learning
5Other Forms of Business Organization
Municipal corporationsNonprofit corporationsCooperatives
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 9© 2011 South-Western | Cengage Learning
5LESSON 5-2
Operations of Global Businesses
GOALSGOALSDescribe the activities and
characteristics of multinational companies.
Identify concerns related to multinational companies.
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 10© 2011 South-Western | Cengage Learning
5
Multinational Companies
Multinational companies in operationCharacteristics of multinational companies
Worldwide market viewStandardized productCulturally-sensitive hiringInternational and local perspective
Concerns about multinational companies
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 11© 2011 South-Western | Cengage Learning
5LESSON 5-3
Starting Global Business Activities
GOALSGOALSIdentify five low-risk methods for
getting involved in international business.
Discuss higher-risk methods for getting involved in international business.
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 12© 2011 South-Western | Cengage Learning
5Methods for Getting Involved in International Business
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 13© 2011 South-Western | Cengage Learning
5Low-Risk Methods for Getting Involved in International Business
Indirect exportingDirect exportingManagement contractingLicensingFranchising
INTERNATIONAL BUSINESS, 4e CHAPTER
SLIDE 14© 2011 South-Western | Cengage Learning
5Higher-Risk Methods for Getting Involved in International Business
Joint venturesTurnkey projectForeign direct investment