Cisco Systems Analysis
Chapter 1:
I. Key attributed of successful companies
a. Have skilled people
b. Have strong relationships
c. Have enough funding to execute their plans and support their operations
II. To be successful, a company must meet its first main goal
a. Identifying, creating, and delivering highly values products and services to its customers.
III. Corporate life cycle
a. Starting up as a proprietorship
i. Three important advantage
1. It is easily and inexpensively formed
2. Subject to few gov regulations
3. Its income is not subject to corporate taxation but is taxes as part of the proprietorship’s personal income ii. Limitations
1. It may be difficult for a proprietorship to obtain the capital needed for growth
2. The proprietor has unlimited personal liability for the business’s debts, which can result in losses that exceed the money invested in the company
3. The life of proprietorship is limited to the life of its founder.
b. Partnership
i. Limited partnership – only lose the amount invested in the partnership ii. General partnership - unlimited liability iii. Limited partners – no control iv. Limited liability partnership (limited liability company) – limited liability, limited loss
c. A Corporation
i. Advantages
1. Unlimited life
2. Easy transferability of ownership
3. Limited liability ii. Disadvantage
1. Corporate earnings may be subject to double taxation
2. Involves preparing a charter, writing a set of bylaws, and filing the many required state and federal reports (complex)
a. Requires
i. Name of the proposed corporation ii. Types of activities it will pursue iii. Amount of capital stock iv. Number of directors
v. Name and addresses of directors
b. Bylaws
i. How directors are to be elected to be elected ii. Whether the existing stockholders will have the first right to buy any new shares the firm issues iii. Procedures for changing the bylaws themselves
c. Growing and managing a corporation
i. What is to prevent
I. Key attributed of successful companies
a. Have skilled people
b. Have strong relationships
c. Have enough funding to execute their plans and support their operations
II. To be successful, a company must meet its first main goal
a. Identifying, creating, and delivering highly values products and services to its customers.
III. Corporate life cycle
a. Starting up as a proprietorship
i. Three important advantage
1. It is easily and inexpensively formed
2. Subject to few gov regulations
3. Its income is not subject to corporate taxation but is taxes as part of the proprietorship’s personal income ii. Limitations
1. It may be difficult for a proprietorship to obtain the capital needed for growth
2. The proprietor has unlimited personal liability for the business’s debts, which can result in losses that exceed the money invested in the company
3. The life of proprietorship is limited to the life of its founder.
b. Partnership
i. Limited partnership – only lose the amount invested in the partnership ii. General partnership - unlimited liability iii. Limited partners – no control iv. Limited liability partnership (limited liability company) – limited liability, limited loss
c. A Corporation
i. Advantages
1. Unlimited life
2. Easy transferability of ownership
3. Limited liability ii. Disadvantage
1. Corporate earnings may be subject to double taxation
2. Involves preparing a charter, writing a set of bylaws, and filing the many required state and federal reports (complex)
a. Requires
i. Name of the proposed corporation ii. Types of activities it will pursue iii. Amount of capital stock iv. Number of directors
v. Name and addresses of directors
b. Bylaws
i. How directors are to be elected to be elected ii. Whether the existing stockholders will have the first right to buy any new shares the firm issues iii. Procedures for changing the bylaws themselves
c. Growing and managing a corporation
i. What is to prevent