Page 150 - Introduction to Business

124 PART 1 The Nature of Contemporary Business

Portfolio Projects

Exploring Your Own Case in Point efforts. How is this involvement beneficial to your
This chapter deals with the governance structure of company?
businesses, including large publicly traded corpora- Starting Your Own Business
tions. It examines governmental regulation of major After reading this chapter you should be able to address
corporations, as well as the ethical practices and social
some issues related to the potential legal structure of
responsibility of corporations. Answers to the questions
your business, its possible stakeholders, and its role in
below will help you better understand how your com-
your community.
pany is governed and how it operates in its communi-
ties. 1. Which business governance structure will you use?
What are the advantages/disadvantages of this
1. Where is your company incorporated, and what
business form? Do you think you might change
type or types of common stock does it have issued
your structure as the business grows?
and outstanding?
2. Is there any possibility that in the near future you
2. Who are the members of the board of directors of
might have partners in your business? What kind
your company? What are their backgrounds? Are
of partners (general or limited) would you be most
there any/many female/minority directors?
interested in having?
3. During the past few years, has your company
3. Will you need to have creditors to fund your busi-
issued stock options to its corporate officers or
ness? What kind of relationship with your creditors
directors? If so, how many shares of stock options
do you hope to establish?
has it issued? How many shares of stock do the
company’s top officers own outright versus via 4. Who will be some of the suppliers for your busi-
stock options? ness? Do you expect to have a diverse set of
suppliers?
4. Has your company issued a company code of
ethics? If so, what are some of the key provisions of 5. How will your business interact with its commu-
this code? nity? How will you prevent unethical behavior
from occurring in your business?
5. Is your company involved in efforts to improve its
community? If so, describe some of its recent

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