Commercial Organizations are formed to maximize the profit, in the
there are several liberties to do any type of economic activities to generate
the profit. However, in the connection of doing business there are rules and
regulation that has to follow by the business to ensure their integrity and
fairness regarding the business and its operations. USA
In USA there are two type of organization that are categorized as the public and private organization, the main difference in these organization is the structure, in the structure of public sector organization there are board of directors who are selected on the basis of share holders discretion while in the private organization, there is no any obligation to select the director or board of director on the basis of share holders discretion because in private organization, the owner or the partners are the key authority who is responsible and bear the private company profit and loss as well as take their operations while in the public organization, directors of the company or the board of directors of the company act as the representative of the investors who has the shares of the public company that are traded in the stock market.
Furthermore, the public company is the organization that has stocks is share markets that are easily available for investors to trade. These companies are comprises with the number of shareholders that have the power to claim on the assets and profits according to their participated ratios. In
the public company means that
their shares are traded in the United States Stock Exchange and are bound to
submit their financial reports to US Securities and Exchange Commission
The main advantage is that this documented financial information is easily availed to the public and shareholders. Usually these all type of information can easily be extracted from the particular company’s website and via the online independent resources such as CNNmoney.com etc. in other word searching the information and financial figures about the Public company is not the big task because their financial reports and figures are easily and publically available.
As far as the Private companies are concerned, The Private companies The Private companies generally are the property and managed by the private investors and founders. These private companies are not liable to share and disclose their financial figures and reports to the public as they are privately owned and the public investments are not involved in their business/shares. The private companies’ shares are not available for trading and investing in the Stock markets. Furthermore, private companies are not required to submit their financials to the Securities and Exchange Commission.
It is the common perception that these companies are small in size but this perception is wrong, Koch Industries, PricewaterhouseCoopers and Ernst & Young are privately held companies. As these companies stock are not available for trade and as they are privately held, to access their financial information and figures, one has to approach and request to their concerned authorities. Moreover, some useful information might be extracted from the different sources such as Forbes.com etc.
As the shares of public companies are publically traded in the stock exchanges and they are liable to submit their performance report in the shape of financial figures according to the predefined standardized format. Therefore, as the public companies raised their capital by public financing using the initial public offering (IPO) etc. Therefore, these companies are liable to show their financials to their shareholders because the general public sharing is involved in the business operations, as their financial reports are easily available via the company websites, different online source and in printed form. Usually one particular annual financial report comprises with the past financial data of 5 years. Furthermore, the previous year reports are easily available on the above mentioned sources and could be accessed from the company’s concerned department.
For having the information about the top executive and the list of directors, company’s financial reports are the no doubt reliable, authentic and key source because usually these reports are backed with such type of information. Second source is the particular company’s own website and the request to the concerned company’s officials and authorities. Besides that the independent source such as: aflcio.org, forbes.com, conference-board.org and msnbc.msn.com and even a lot more that can easily be searched, are useful sources to have such type of information.
Furthermore, in the perspective of public company, the key aspect is that they are bound to publicized there information, specially their financial information so that each and every aspect could easily be analyzed not only by the investors and stock holders but also by the independent analyst who has the core responsibility to continuously, keenly and thoroughly analyze the pubic company performance. It should be noticed that the performance in the stock market of any particular company is solely based upon on its financial performance that are keep publicized in the form and shape of quarterly, biannually and yearly financial results that are easily available on the particular company’s websites or can easily be get from the registered offices, besides there are number of online resource as described earlier that are solely engaged to perform their responsibilities in the domain of financial analysis of the firms and their performance in the stock markets while in the case of private companies there are no any such type of activities that are obliged to done.
Another key aspect is that the financial data of the public firm are also available in the shape of chart, graphs and different type of user friendly formats that an investor or even a layman can easily understand.
The reason to publicize the crucial financial information on one hand is to unveil the pros and cons of the performance of the firm and to on the other hand these information are the catalyst to provoke the investors to make their investment decision. Following are the easy example of specific financial performance of the public; this example will clear that in which format this information could be available.
A person can also pick any public firm from the particular websites to analyze their trends and financial moves. However, to have the brief information, the performances of selected public companies are discussed. The public companies that are selected in that connection are famous and that are Ford, Google and Whole food markets.
Ford Motor Company
“Ford Motor Company (NYSE:F) is the automotive manufacturer by production volume. The company sells vehicles under the Ford, Mercury (discontinued), Lincoln, and Volvo (to be sold) brands. Since the mid-1990s, Ford has been steadily losing market share in the
US car market, from 25% in FY1995
to 5.5% in FY2009. At the same time, Ford's European operations have increased
share by producing many critically acclaimed vehicles well known for quality.
This difference between Ford's domestic and international operations is a
result of costly US
manufacturing facilities caused by high wages and expensive healthcare and
retirement obligations for union labor. Therefore, improving operational
efficiency and developing a more fuel efficient product offering are the
centerpieces of Ford's turnaround plan. For example, Ford has cut 40,000 jobs
in the past three years and closed seven factories in the past five years.
Meanwhile the company has unveiled plans to bring six of its fuel efficient
models (average fuel economy of over 30 mpg) currently sold in Europe to the U.S. market”. ("Money,"