In this module, we learned about large and small business entities and how they are structured. This can include a sole proprietorship (e.g. house painter), partnership (e.g. law firm), or a corporation (e.g. your Capstone focus company). How does the size of your focus company impact its legal form? The IRS regulates the criteria for S corporations, C corporations, LLC's, etc. The size of your company could have an impact on the allowable structure and legal form, as well as taxes owed or saved, even whether non-Americans citizens can be shareholders. Read the criteria for the forms of business ownership in the text, and then respond to the following questions:
Compare the organization of your large, publicly traded focus company with a small business entity for a similar product or service.
Respond to the following by including 1-2 paragraphs for each item:
- Provide a brief description of how your focus company is structured. Identify the form of corporate ownership used by the company -- C Corporation, S Corporation, LLC, etc. and indicate the state or country in which the company was originally incorporated. What is an advantage or disadvantage of this form of ownership?
- How has it expanded or contracted over its history? Have they used mergers or acquisitions to become a larger company? Have they divested or sold off portions of their company that might reduce its size? Cite specific examples from your focus company.
- How does the organization of this company differ from a smaller business (i.e. sole proprietorship) in how it operates, grows, makes decisions, etc.?