Print BestFit RE: Assignment 2.1: Project—The Firm's Form of Business Ownership Nikki Pearson

The Firm's Form of Business

Class, May 12, 2011

Assignment 2.1

The current form of business ownership of Nike is corporation. Phil Knight is the company chairman William J Bowerman is the Deputy Chairman, Mark Parker is the President, CEO, and Director, and Gary DeStefanio is the President/ Global Operations. A corporation is a legal business organization; it has board of directors, stockholders, shareholders, a President, CEO, and Vice President. Nike has a headquarters. Nike Corporate Headquarters is located in Beaverton, Oregon and the Nike World Headquarter sis in Washington, D.C.

There are some advantages and disadvantages of this form of ownership. The advantages are easy to raise capital, easy to attract employees, specialized management, and limited liability. The personal assets of shareholders are not at risk. Even though the owner own all the shares they are not personally responsible for them. The disadvantages would be hard/ difficult, costly to form, heavily regulated by the Government, and double taxation. It pays taxes separate and apart from its owners. Once when the company makes its profit and again when dividends are paid to the shareholders.

This form of ownership affects the company's ability to raise funds by offering stock..

Having a corporation form of ownership affects the company's sale of its products and or services by giving it a broader market, cheaper pricing, and more ability to advertise using the media, billboards, and sponsorship.

NP