Barber Airlines. You mustache yourself a question? How much money can we shave you?

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2 Barber Airlines You mustache yourself a question? How much money can we shave you? 2

3 Economics Performance Answer the following questions: What type of business organization was Barber Airlines at the beginning of the presentation? What did the torn pieces of paper represent? Who do you think the people with the torn pieces of paper represent? What happened at the very end of the presentation and why?

4 Proctor & Gamble

5 What is a corporation? A business that is owned by individual stock holders

6 If you own a share of stock Then you are a stock holder and part owner of the business!

7 How much liability would you have if this happened? Stock holders have limited liability! You only lose the money that you invest.

8 What is a corporation? A business that is owned by individual stock holders Considered a legal entity They are legally treated like people! They can

9 Pay taxes Make contracts Sue other parties

10 I m so suing that guy

11 Corporate Structure Board of Directors Corporate Officers Managers & Employees

12 Board of Directors Approves decisions for corporation and manages executives Stockholders vote who will be the directors

13 Corporate Officers Appointed by the board of directors They run the corporation Usually called the Chief Executive (CEO)

14 Managers and Employees Everyone else working for the corporation

15 Top 10 Biggest Corporations 1. Wal-Mart (USA) 2. Sinopec (China) 3. PetroChina 4. Royal Dutch Shell (England & Netherlands) 5. ExxonMobil (USA) 6. Saudi Aramco (Saudi Arabia) 7. BP (England) 8. State Grid (China) 9. Toyota (Japan) 10. Samsung (Korea)

16 Types of Corporations Closely/Privately Held Publicly Held Only a few people own stock, usually family members Stock is sold on the open market

17 Corporate Combinations

18 Corporate Combinations When corporations merge (combine) with another firm Usually by buying out the other firms Three Types.

19 Horizontal Mergers Merges with firms competing in the same market.

20 Vertical Mergers Merge with firms that are involved in different stages of making the same product.

21 Proctor Conglomerate & Gamble Merge with firms that make unrelated products

22 Multinational Corporations (MNC s)

23 Multinational Corporations Large corporation that produces and sells its goods and services throughout the world. Leads to globalization Connecting countries economically by opening trade

24 Multinationals have positive and negative effects on the world

25 Globalization Look at the tags of the clothes you are wearing and the products you currently have with you. Where are they made? 25

26 Walmart: Good Or Bad Facts about Walmart Video ows/walmart/view/ 26

27 Questions for video What does Walmart do that helps keep them organized and ready to keep their stores stocked? How did Walmart change the way retailers and producers do business? Use Rubbermade as an example What is Walmarts strategy to attract business? Why did Walmart start importing goods from other countries in the 90 s? How did the plan of opening up trade with China work? Was it going as planned? 27