4. S Corporations and C Corporations S and C corporations may be private or public companies. All start as private companies and may choose to transition to a public company through the IPO process. Both S and C corporations issue stock, vote on officers and directors, hold annual shareholder...
They can also receive donations from various funding sources, including private donors, for-profit corporations, and government grants. Examples of nonprofits Dwell With Dignity is a non-profit organization that helps people in need access resources to furnish their homes. Another example of a non-...
The privatesectoris the part of the economy run by individuals and companies for profit and is not state-controlled. Therefore, it encompasses all for-profit businesses not owned or operated by the government. Government-run companies and corporations are part of what is known as the public sect...
Limited Liabilities Companies (LLC): This is yet another private company type. LLCs have multiple owners who share the responsibilities. Such entities provide the benefits of both partnerships and corporations. The two advantages of being an LLC are – these entities can have pass-through income t...
The problem with Enron was that its board of directors waived many rules related to conflicts of interest by allowing thechief financial officer (CFO), Andrew Fastow, to create independent, private partnerships to do business with Enron. These private partnerships were used to hide Enron's debts...
Private cloud From corporations to universities, organisations can host private clouds (also known as corporate clouds, internal clouds, and on-premise clouds) for their exclusive use. When they do, they own the cloud’s underlying infrastructure and host it either onsite or at a remote location...
Firms can raise the amount of capital they need by selling shares of themselves to the public through an initial public offering (IPO). This changes the company's status from a "private" firm whose shares are held by a few private shareholders to a publicly traded company whose shares will...
For example, the machinery in a factory, the computers of a tech company, and the instruments of a musician are capital goods. For modern, mainstream (neoclassical) economists, capital is the primary driver of value. It is important to distinguish personal and private capital in the factors of...
private portfolios with cash the investors put in banks that are then eager to loan this extra money. Businesses take advantage of the availability of the banks’ low-interest rate loans to purchase or expand factories and equipment and to hire employees so they can produce more products and ...
In a plutocracy, only the wealthy rule the government. Not always government officials, the plutocrats may be extremely affluent private individuals who use their wealth to influence elected officials through legal and illegal means, includinglobbying, bribery, and sizeable electioncampaign contributions...