The corporate form of organization has many variations around the world. The exact laws and regulations differ from country to country, of course, but the essential features of public ownership and limited liability remain. These firms are often called joint stock companies, public limited companies, or limited liability companies, depending on the specific nature of the firm and the country of origin. Table 1.1 gives the names of a few well known international corporations, their country of origin, and a translation of the abbreviation that follows the company name.
|
Type of Company |
|||
|
Company |
Country of Origin |
In Original Language |
Translated |
|
Bayerische Moterenwerke (BMW) AG |
Germany |
Aktiengesellschaft |
Corporation |
|
Dornier GmBH |
Germany |
Gesellschaft mit Beschraenkter Haftung |
Limited liability company |
|
Rolls Royce PLC |
United Kingdom |
Public limited company |
Public limited company |
|
Shell UK Ltd. |
United Kingdom |
Limited |
|
|
Unilever NV |
Netherlands |
Naamloze Vennootschap |
Joint stock company |
|
Fiat SpA |
Italy |
Societa per Azioni |
Joint stock company |
|
Volvo AB |
Sweden |
Aktiebolag |
Joint stock company |
|
Peugeot SA |
France |
Société Anonyme |
Joint stock company |
C O N C E P T Q U E S T I O N S
a What are the three forms of business organization?
b What are the primary advantages and disadvantages of sole proprietorships and partnerships?
c What is the difference between a general and a limited partnership?
d Why is the corporate form superior when it comes to raising cash?