1. In the Beginning…

This chapter sets the stage for all others to come, which is unsurprising given its placement. In this introductory chapter, we will cover two topics, both of which are crucial in preparing the reader for the topics upcoming throughout the text. The first step in understanding how a corporation operates is to understand how one begins. While the specific steps of a company’s start-up can take many forms, there are several things that generally happen. First is the decision of the type of firm the owners choose to create. As you will see in the upcoming pages, this is much more than just a name or a classification. In fact, the company type will determine how the company operates, from day-to-day activities to long-run projects designed to facilitate growth and generate potential stockholder benefits.