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movie

Film

From Wikipedia, the free encyclopedia

A 16 mm spring-wound Bolex H16 Reflex camera, a popular introductory camera in film schools
 
World cinema
  • African cinema
  • Asian cinema
East Asian cinema
South Asian cinema
Southeast Asian cinema
West Asian cinema
  • European cinema
  • Latin American cinema
  • North American cinema
  • Oceanian cinema


Film encompasses individual motion pictures, the field of film as an art form, and the motion picture industry. Films are produced by recording images from the world with cameras, or by creating images using animation techniques or special effects.

Films are cultural artifacts created by specific cultures, which reflect those cultures, and, in turn, affect them. Film is considered to be an important art form, a source of popular entertainment and a powerful method for educating — or indoctrinating — citizens. The visual elements of cinema gives motion pictures a universal power of communication. Some films have become popular worldwide attractions by using dubbing or subtitles that translate the dialogue.

Traditional films are made up of a series of individual images called frames. When these images are shown rapidly in succession, a viewer has the illusion that motion is occurring. The viewer cannot see the flickering between frames due to an effect known as persistence of vision, whereby the eye retains a visual image for a fraction of a second after the source has been removed. Viewers perceive motion due to a psychological effect called beta movement.

The origin of the name "film" comes from the fact that photographic film (also called film stock) had historically been the primary medium for recording and displaying motion pictures. Many other terms exist for an individual motion picture, including picture, picture show, photo-play, flick, and most commonly, movie. Additional terms for the field in general include the big screen, the silver screen, the cinema, and the movies.

Contents

  • 1 History
  • 2 Theory
    • 2.1 Language
    • 2.2 Montage
    • 2.3 Criticism
  • 3 Industry
  • 4 Associated fields
  • 5 Terminology used
    • 5.1 Preview
    • 5.2 Trailer
    • 5.3 Film, or other art form?
  • 6 Education and Propaganda
  • 7 Production
    • 7.1 Crew
    • 7.2 Technology
    • 7.3 Independent
    • 7.4 Open content film
    • 7.5 Fan film
  • 8 Animation
  • 9 Venues
  • 10 Future state
  • 11 See also
  • 12 Notes
  • 13 References
  • 14 External links
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History

Charlie Chaplin, the Marriage Bond.ogg
Play video
A clip from theCharlie Chaplin silent film, The Bond (1918)

Preceding film by thousands of years, plays and dances had elements common to film: scripts, sets, costumes, production, direction, actors, audiences, storyboards, and scores. Much terminology later used in film theory and criticism applied, such as mise en scene (roughly, the entire visual picture at any one time). Moving visual and aural images were not recorded for replaying as in film.

Near the year 1600, the camera obscura was perfected by della Porta. Light is inverted through a small hole or lens from outside, and projected onto a surface or screen, creating a moving image, but it is not preserved in a recording.

In the 1860s, mechanisms for producing two-dimensional drawings in motion were demonstrated with devices such as the zoetrope, mutoscope and praxinoscope. These machines were outgrowths of simple optical devices (such as magic lanterns) and would display sequences of still pictures at sufficient speed for the images on the pictures to appear to be moving, a phenomenon called persistence of vision. Naturally the images needed to be carefully designed to achieve the desired effect, and the underlying principle became the basis for the development of film animation.

With the development of celluloid film for still photography, it became possible to directly capture objects in motion in real time. An 1878 experiment by Eadweard Muybridge in the United States using 24 cameras produced a series of stereoscopic images of a galloping horse, arguably the first "motion picture," though it was not called by this name. This technology required a person to look into a viewing machine to see the pictures which were separate paper prints attached to a drum turned by a handcrank. The pictures were shown at a variable speed of about 5 to 10 pictures per second, depending on how rapidly the crank was turned. Commercial versions of these machines were coin operated.

A frame from Roundhay Garden Scene, the world's earliest film produced using a motion picture camera, by Louis Le Prince, 1888

By the 1880s the development of the motion picture camera allowed the individual component images to be captured and stored on a single reel, and led quickly to the development of a motion picture projector to shine light through the processed and printed film and magnify these "moving picture shows" onto a screen for an entire audience. These reels, so exhibited, came to be known as "motion pictures". Early motion pictures were static shots that showed an event or action with no editing or other cinematic techniques.

Ignoring Dickson's early sound experiments (1894), commercial motion pictures were purely visual art through the late 19th century, but these innovative silent films had gained a hold on the public imagination. Around the turn of the twentieth century, films began developing a narrative structure by stringing scenes together to tell narratives. The scenes were later broken up into multiple shots of varying sizes and angles. Other techniques such as camera movement were realized as effective ways to portray a story on film. Rather than leave the audience in silence, theater owners would hire a pianist or organist or a full orchestra to play music fitting the mood of the film at any given moment. By the early 1920s, most films came with a prepared list of sheet music for this purpose, with complete film scores being composed for major productions.

A shot from Georges Méliès Le Voyage dans la Lune (A Trip to the Moon) (1902), an early narrative film.

The rise of European cinema was interrupted by the outbreak of World War I when the film industry in United States flourished with the rise of Hollywood, typified most prominently by the great innovative work of D.W. Griffith in The Birth of a Nation (1914) and Intolerance (1916) . However in the 1920s, European filmmakers such as Sergei Eisenstein, F. W. Murnau, and Fritz Lang,in many ways inspired by the meteoric war-time progress of film through Griffith, along with the contributions of Charles Chaplin, Buster Keaton and others, quickly caught up with American film-making and continued to further advance the medium. In the 1920s, new technology allowed filmmakers to attach to each film a soundtrack of speech, music and sound effects synchronized with the action on the screen. These sound films were initially distinguished by calling them "talking pictures", or talkies.

The next major step in the development of cinema was the introduction of so-called "natural" color. While the addition of sound quickly eclipsed silent film and theater musicians, color was adopted more gradually as methods evolved making it more practical and cost effective to produce "natural color" films. The public was relatively indifferent to color photography as opposed to black-and-white,[citation needed] but as color processes improved and became as affordable as black-and-white film, more and more movies were filmed in color after the end of World War II, as the industry in America came to view color as essential to attracting audiences in its competition with television, which remained a black-and-white medium until the mid-1960s. By the end of the 1960s, color had become the norm for film makers.

Since the decline of the studio system in the 1960s, the succeeding decades saw changes in the production and style of film. New Hollywood, French New Wave and the rise of film school educated independent filmmakers were all part of the changes the medium experienced in the latter half of the 20th century. Digital technology has been the driving force in change throughout the 1990s and into the 21st century.

Theory

Film theory seeks to develop concise and systematic concepts that apply to the study of film as art. It was started by Ricciotto Canudo's The Birth of the Sixth Art. Formalist film theory, led by Rudolf Arnheim, Béla Balázs, and Siegfried Kracauer, emphasized how film differed from reality, and thus could be considered a valid fine art. André Bazin reacted against this theory by arguing that film's artistic essence lay in its ability to mechanically reproduce reality not in its differences from reality, and this gave rise to realist theory. More recent analysis spurred by Jacques Lacan's psychoanalysis and Ferdinand de Saussure's semiotics among other things has given rise to psychoanalytical film theory, structuralist film theory, feminist film theory and others.

Language

Film is considered to have its own language. James Monaco wrote a classic text on film theory titled "How to Read a Film". Director Ingmar Bergman famously said, "[Andrei] Tarkovsky for me is the greatest [director], the one who invented a new language, true to the nature of film, as it captures life as a reflection, life as a dream." Examples of the language are a sequence of back and forth images of one actor's left profile speaking, followed by another actor’s right profile speaking, then a repetition of this, which is a language understood by the audience to indicate a conversation. Another example is zooming in on the forehead of an actor with an expression of silent reflection, then changing to a scene of a younger actor who vaguely resembles the first actor, indicating the first actor is having a memory of their own past.

Montage

Parallels to musical counterpoint have been developed into a theory of montage, extended from the complex superimposition of images in early silent film[citation needed] to even more complex incorporation of musical counterpoint together with visual counterpoint through mise en scene and editing, as in a ballet or opera; e.g., as illustrated in the gang fight scene of director Francis Ford Coppola’s film, Rumble Fish.

Criticism

Film criticism is the analysis and evaluation of films. In general, these works can be divided into two categories: academic criticism by film scholars and journalistic film criticism that appears regularly in newspapers and other media.

Film critics working for newspapers, magazines, and broadcast media mainly review new releases. Normally they only see any given film once and have only a day or two to formulate opinions. Despite this, critics have an important impact on films, especially those of certain genres. Mass marketed action, horror, and comedy films tend not to be greatly affected by a critic's overall judgment of a film. The plot summary and description of a film that makes up the majority of any film review can still have an important impact on whether people decide to see a film. For prestige films such as most dramas, the influence of reviews is extremely important. Poor reviews will often doom a film to obscurity and financial loss.

The impact of a reviewer on a given film's box office performance is a matter of debate. Some claim that movie marketing is now so intense and well financed that reviewers cannot make an impact against it. However, the cataclysmic failure of some heavily-promoted movies which were harshly reviewed, as well as the unexpected success of critically praised independent movies indicates that extreme critical reactions can have considerable influence. Others note that positive film reviews have been shown to spark interest in little-known films. Conversely, there have been several films in which film companies have so little confidence that they refuse to give reviewers an advanced viewing to avoid widespread panning of the film. However, this usually backfires as reviewers are wise to the tactic and warn the public that the film may not be worth seeing and the films often do poorly as a result.

It is argued that journalist film critics should only be known as film reviewers, and true film critics are those who take a more academic approach to films. This line of work is more often known as film theory or film studies. These film critics attempt to come to understand how film and filming techniques work, and what effect they have on people. Rather than having their works published in newspapers or appear on television, their articles are published in scholarly journals, or sometimes in up-market magazines. They also tend to be affiliated with colleges or universities.

Industry

The making and showing of motion pictures became a source of profit almost as soon as the process was invented. Upon seeing how successful their new invention, and its product, was in their native France, the Lumières quickly set about touring the Continent to exhibit the first films privately to royalty and publicly to the masses. In each country, they would normally add new, local scenes to their catalogue and, quickly enough, found local entrepreneurs in the various countries of Europe to buy their equipment and photograph, export, import and screen additional product commercially. The Oberammergau Passion Play of 1898[citation needed] was the first commercial motion picture ever produced. Other pictures soon followed, and motion pictures became a separate industry that overshadowed the vaudeville world. Dedicated theaters and companies formed specifically to produce and distribute films, while motion picture actors became major celebrities and commanded huge fees for their performances. Already by 1917, Charlie Chaplin had a contract that called for an annual salary of one million dollars.

From 1931 to 1956, film was also the only image storage and playback system for television programming until the introduction of videotape recorders.

In the United States today, much of the film industry is centered around Hollywood. Other regional centers exist in many parts of the world, such as Mumbai-centered Bollywood, the Indian film industry's Hindi cinema which produces the largest number of films in the world.[1] Whether the ten thousand-plus feature length films a year produced by the Valley pornographic film industry should qualify for this title is the source of some debate.[citation needed] Though the expense involved in making movies has led cinema production to concentrate under the auspices of movie studios, recent advances in affordable film making equipment have allowed independent film productions to flourish.

Profit is a key force in the industry, due to the costly and risky nature of filmmaking; many films have large cost overruns, a notorious example being Kevin Costner's Waterworld. Yet many filmmakers strive to create works of lasting social significance. The Academy Awards (also known as "the Oscars") are the most prominent film awards in the United States, providing recognition each year to films, ostensibly based on their artistic merits.

There is also a large industry for educational and instructional films made in lieu of or in addition to lectures and texts.

Associated fields

Derivative academic Fields of study may both interact with and develop independently of filmmaking, as in film theory and analysis. Fields of academic study have been created that are derivative or dependent on the existence of film, such as film criticism, film history, divisions of film propaganda in authoritarian governments, or psychological on subliminal effects of a flashing soda can during a screening. These fields may further create derivative fields, such as a movie review section in a newspaper or a television guide. Sub-industries can spin off from film, such as popcorn makers, and toys. Sub- industries of pre-existing industries may deal specifically with film, such as product placement in advertising.

Terminology used

Most people use "film" and "movie" interchangeably[citation needed]. "Film" is more often used when considering artistic, theoretical, or technical aspects, as studies in a university class. "Movies" more often refers to entertainment or commercial aspects, as where to go for fun on a date. For example, a book titled "How to Read a Film" would be about the aesthetics or theory of film, while "Lets Go to the Movies" would be about the history of entertaining movies. "Motion pictures” or "Moving pictures" are films and movies. A "DVD", "videotape", "video" or "vid" is a digital reproduction of an analogue film, or a product with all of the elements of an analogue film but made in an electromagnetic storage medium. "Film" refers to the media onto which a visual art is shot, and to this end no digital originating work can be referred to as a "film" and the action of shooting is not "filming." "Silent films" need not be silent, but are films and movies without an audible dialogue, though they may have a musical soundtrack. "Talkies" refers to early movies or films having audible dialogue or analogue sound, not just a musical accompaniment. "Cinema" either broadly encompasses both films and movies, or is roughly synonymous with “Film”, both capitalized when referring to a category of art. The "silver screen" refers to classic black and white films before color, not to contemporary films without color.

The expression "Sight and Sound", as in the film journal of the same name, means "film". The following icons mean film - a "candle and bell", as in the films Tarkovsky, of a segment of film stock, or a two faced Janus image, and an image of a movie camera in profile.

"Widescreen" and "Cinemascope" refers to a larger width to height in the frame, compared to an earlier historic aspect ratios. A "feature length film", or "feature film", is of a conventional full length, usually 60 minutes or more, and can commercially stand by itself without other films in a ticketed screening. A "short" is a film that is not as long as a feature length film, usually screened with other shorts, or preceding a feature length film. An "independent" is a film made outside of the conventional film industry.

A "screening" or "projection" is the projection of a film or video on a screen at a public or private theater, usually but not always of a film, but of a video or DVD when of sufficient projection quality. A "double feature" is a screening of two independent, stand-alone, feature films. A "viewing" is a watching of a film. A "showing" is a screening or viewing on an electronic monitor. "Sales" refers to tickets sold at a theater, or more currently, rights sold for individual showings. A "release" is the distribution and often simultaneous screening of a film. A "preview" is a screening in advance of the main release.

"Hollywood" may be used either as a pejorative adjective, shorthand for asserting an overly commercial rather than artistic intent or outcome, as in "too Hollywood", or as a descriptive adjective to refer to a film originating with people who ordinarily work near Los Angeles.

Expressions for Genres of film are sometimes used interchangeably for "film" in a specific context, such as a "porn" for a film with explicit sexual content, or "cheese" for films that are light, entertaining and not highbrow.

Any film may also have a "Sequel", which chronologically portrays events following those in the film. Film sequels may even be released first, e.g. Star Wars Episode IV.

Preview

A preview performance refers to a showing of a movie to a select audience, usually for the purposes of corporate promotions, before the public film premiere itself. Previews are sometimes used to judge audience reaction, which if unexpectedly negative, may result in recutting or even refilming certain sections (Audience response).

Trailer

Trailers or previews are film advertisements for films that will be exhibited in the future at a cinema, on whose screen they are shown. The term "trailer" comes from their having originally been shown at the end of a film programme. That practice did not last long, because patrons tended to leave the theater after the films ended, but the name has stuck. Trailers are now shown before the film (or the A movie in a double feature program) begins.

Film, or other art form?

Film may be combined with performance art and still be considered or referred to as a “film”. For example, when there is a live musical accompaniment to a silent film. Another example is audience participation films, as at a midnight movies screening of The Rocky Horror Picture Show, where the audience dresses up in costume from the film and loudly does a karaoke-like reenactment along with the film. Performance art where film is incorporated as a component is usually not called film, but a film, which could stand-alone but is accompanied by a performance may still be referred to as a film.

The act of making a film can, in and of itself, be considered a work of art, on a different level from the film itself, as in the films of Werner Herzog.

Similarly, the playing of a film can be considered to fall within the realm of political protest art, as in the subtleties within the films of Tarkovsky. A "road movie" can refer to a film put together from footage from a long road trip or vacation.

Education and Propaganda

Film is used for education and propaganda. When the purpose is primarily educational, a film is called an "educational film". Examples are recordings of lectures and experiments, or more marginally, a film based on a classic novel.

Film may be propaganda, in whole or in part, such as the films made by Leni Riefenstahl in Nazi Germany, US war film trailers during World War II, or artistic films made under Stalin by Eisenstein. They may also be works of political protest, as in the films of Wajda, or more subtly, the films of Andrei Tarkovsky.

The same film may be considered educational by some, and propaganda by others, such as some of the films of Michael Moore.

Production

At its core, the means to produce a film depend on the content the filmmaker wishes to show, and the apparatus for displaying it: the zoetrope merely requires a series of images on a strip of paper. Film production can therefore take as little as one person with a camera (or without it, such as Stan Brakhage's 1963 film Mothlight), or thousands of actors, extras and crewmembers for a live-action, feature-length epic.

The necessary steps for almost any film can be boiled down to conception, planning, execution, revision, and distribution. The more involved the production, the more significant each of the steps becomes. In a typical production cycle of a Hollywood-style film, these main stages are defined as:

  1. Development
  2. Pre-production
  3. Production
  4. Post-production
  5. Distribution

This production cycle usually takes three years. The first year is taken up with development. The second year comprises preproduction and production. The third year, post-production and distribution.

The bigger the production, the more resources it takes, and the more important financing becomes; most feature films are not only artistic works, but for-profit business entities.

Crew

A film crew is a group of people hired by a film company, employed during the "production" or "photography" phase, for the purpose of producing a film or motion picture. Crew are distinguished from cast, the actors who appear in front of the camera or provide voices for characters in the film. The crew interacts with but is also distinct from the production staff, consisting of producers, managers, company representatives, their assistants, and those whose primary responsibility falls in pre-production or post-production phases, such as writers and editors. Communication between production and crew generally passes through the director and his/her staff of assistants. Medium-to-large crews are generally divided into departments with well defined hierarchies and standards for interaction and cooperation between the departments. Other than acting, the crew handles everything in the photography phase: props and costumes, shooting, sound, electrics (i.e., lights), sets, and production special effects. Caterers (known in the film industry as "craft services") are usually not considered part of the crew.

Technology

Film stock consists of transparent celluloid, acetate, or polyester base coated with an emulsion containing light-sensitive chemicals. Cellulose nitrate was the first type of film base used to record motion pictures, but due to its flammability was eventually replaced by safer materials. Stock widths and the film format for images on the reel have had a rich history, though most large commercial films are still shot on (and distributed to theaters) as 35 mm prints.

Originally moving picture film was shot and projected at various speeds using hand-cranked cameras and projectors; though 1000 frames per minute (16⅔ frame/s) is generally cited as a standard silent speed, research indicates most films were shot between 16 frame/s and 23 frame/s and projected from 18 frame/s on up (often reels included instructions on how fast each scene should be shown)[2]. When sound film was introduced in the late 1920s, a constant speed was required for the sound head. 24 frames per second was chosen because it was the slowest (and thus cheapest) speed which allowed for sufficient sound quality. Improvements since the late 19th century include the mechanization of cameras — allowing them to record at a consistent speed, quiet camera design — allowing sound recorded on-set to be usable without requiring large "blimps" to encase the camera, the invention of more sophisticated filmstocks and lenses, allowing directors to film in increasingly dim conditions, and the development of synchronized sound, allowing sound to be recorded at exactly the same speed as its corresponding action. The soundtrack can be recorded separately from shooting the film, but for live-action pictures many parts of the soundtrack are usually recorded simultaneously.

As a medium, film is not limited to motion pictures, since the technology developed as the basis for photography. It can be used to present a progressive sequence of still images in the form of a slideshow. Film has also been incorporated into multimedia presentations, and often has importance as primary historical documentation. However, historic films have problems in terms of preservation and storage, and the motion picture industry is exploring many alternatives. Most movies on cellulose nitrate base have been copied onto modern safety films. Some studios save color films through the use of separation masters — three B&W negatives each exposed through red, green, or blue filters (essentially a reverse of the Technicolor process). Digital methods have also been used to restore films, although their continued obsolescence cycle makes them (as of 2006) a poor choice for long-term preservation. Film preservation of decaying film stock is a matter of concern to both film historians and archivists, and to companies interested in preserving their existing products in order to make them available to future generations (and thereby increase revenue). Preservation is generally a higher-concern for nitrate and single-strip color films, due to their high decay rates; black and white films on safety bases and color films preserved on Technicolor imbibition prints tend to keep up much better, assuming proper handling and storage.

Some films in recent decades have been recorded using analog video technology similar to that used in television production. Modern digital video cameras and digital projectors are gaining ground as well. These approaches are extremely beneficial to moviemakers, especially because footage can be evaluated and edited without waiting for the film stock to be processed. Yet the migration is gradual, and as of 2005 most major motion pictures are still recorded on film.

Independent

Independent filmmaking often takes place outside of Hollywood, or other major studio systems. An independent film (or indie film) is a film initially produced without financing or distribution from a major movie studio. Creative, business, and technological reasons have all contributed to the growth of the indie film scene in the late 20th and early 21st century.

The Lumière Brothers

On the business side, the costs of big-budget studio films also leads to conservative choices in cast and crew. There is a trend in Hollywood towards co-financing (over two-thirds of the films put out by Warner Bros. in 2000 were joint ventures, up from 10% in 1987).[3] A hopeful director is almost never given the opportunity to get a job on a big-budget studio film unless he or she has significant industry experience in film or television. Also, the studios rarely produce films with unknown actors, particularly in lead roles.

Before the advent of digital alternatives, the cost of professional film equipment and stock was also a hurdle to being able to produce, direct, or star in a traditional studio film.

But the advent of consumer camcorders in 1985, and more importantly, the arrival of high-resolution digital video in the early 1990s, have lowered the technology barrier to movie production significantly. Both production and post-production costs have been significantly lowered; today, the hardware and software for post-production can be installed in a commodity-based personal computer. Technologies such as DVDs, FireWire connections and non-linear editing system pro-level software like Adobe Premiere Pro, Sony Vegas and Apple's Final Cut Pro, and consumer level software such as Apple's Final Cut Express and iMovie make movie-making relatively inexpensive.

Since the introduction of DV technology, the means of production have become more democratized. Filmmakers can conceivably shoot and edit a movie, create and edit the sound and music, and mix the final cut on a home computer. However, while the means of production may be democratized, financing, distribution, and marketing remain difficult to accomplish outside the traditional system. Most independent filmmakers rely on film festivals to get their films noticed and sold for distribution. The arrival of internet-based video outlets such as YouTube and Veoh has further changed the film making landscape in ways that are still to be determined.

Open content film

An open content film is much like an independent film, but it is produced through open collaborations; its source material is available under a license which is permissive enough to allow other parties to create fan fiction or derivative works, than a traditional copyright. Like independent filmmaking, open source filmmaking takes place outside of Hollywood, or other major studio systems.

Fan film

A fan film is a film or video inspired by a film, television program, comic book or a similar source, created by fans rather than by the source's copyright holders or creators. Fan filmmakers have traditionally been amateurs, but some of the more notable films have actually been produced by professional filmmakers as film school class projects or as demonstration reels. Fan films vary tremendously in length, from short faux-teaser trailers for non-existent motion pictures to rarer full-length motion pictures.

Animation

Animation is the technique in which each frame of a film is produced individually, whether generated as a computer graphic, or by photographing a drawn image, or by repeatedly making small changes to a model unit (see claymation and stop motion), and then photographing the result with a special animation camera. When the frames are strung together and the resulting film is viewed at a speed of 16 or more frames per second, there is an illusion of continuous movement (due to the persistence of vision). Generating such a film is very labor intensive and tedious, though the development of computer animation has greatly sped up the process.

File formats like GIF, QuickTime, Shockwave and Flash allow animation to be viewed on a computer or over the Internet.

Because animation is very time-consuming and often very expensive to produce, the majority of animation for TV and movies comes from professional animation studios. However, the field of independent animation has existed at least since the 1950s, with animation being produced by independent studios (and sometimes by a single person). Several independent animation producers have gone on to enter the professional animation industry.

Limited animation is a way of increasing production and decreasing costs of animation by using "short cuts" in the animation process. This method was pioneered by UPA and popularized by Hanna-Barbera, and adapted by other studios as cartoons moved from movie theaters to television.[4]

Although most animation studios are now using digital technologies in their productions, there is a specific style of animation that depends on film. Cameraless animation, made famous by moviemakers like Norman McLaren, Len Lye and Stan Brakhage, is painted and drawn directly onto pieces of film, and then run through a projector.

Venues

When it is initially produced, a feature film is often shown to audiences in a movie theater or cinema. The identity of the first theater designed specifically for cinema is a matter of debate; candidates include Tally's Electric Theatre, established 1902 in Los Angeles[5], and Pittsburgh's Nickelodeon, established 1905. [6] Thousands of such theaters were built or converted from existing facilities within a few years.[7] In the United States, these theaters came to be known as nickelodeons, because admission typically cost a nickel (five cents).

Typically, one film is the featured presentation (or feature film). Before the 1970s, there were "double features"; typically, a high quality "A picture" rented by an independent theater for a lump sum, and a "B picture" of lower quality rented for a percentage of the gross receipts. Today, the bulk of the material shown before the feature film consists of previews for upcoming movies and paid advertisements (also known as trailers or "The Twenty").

Historically, all mass marketed feature films were made to be shown in movie theaters. The development of television has allowed films to be broadcast to larger audiences, usually after the film is no longer being shown in theaters. Recording technology has also enabled consumers to rent or buy copies of films on VHS or DVD (and the older formats of laserdisc, VCD and SelectaVision — see also videodisc), and Internet downloads may be available and have started to become revenue sources for the film companies. Some films are now made specifically for these other venues, being released as made-for-TV movies or direct-to-video movies. The production values on these films are often considered to be of inferior quality compared to theatrical releases in similar genres, and indeed, some films that are rejected by their own studios upon completion are distributed through these markets.

The movie theater pays an average of about 50-55% of its ticket sales to the movie studio, as film rental fees.[8] The actual percentage starts with a number higher than that, and decreases as the duration of a film's showing continues, as an incentive to theaters to keep movies in the theater longer. However, today's barrage of highly marketed movies ensures that most movies are shown in first-run theaters for less than 8 weeks. There are a few movies every year that defy this rule, often limited-release movies that start in only a few theaters and actually grow their theater count through good word-of-mouth and reviews. According to a 2000 study by ABN AMRO, about 26% of Hollywood movie studios' worldwide income came from box office ticket sales; 46% came from VHS and DVD sales to consumers; and 28% came from television (broadcast, cable, and pay-per-view).[8]

Future state

While motion picture films have been around for more than a century, film is still a relative newcomer in the pantheon of fine arts. In the 1950s, when television became widely available, industry analysts[who?] predicted the demise of local movie theaters[citation needed]. Despite competition from television's increasing technological sophistication over the 1960s and 1970s[citation needed]such as the development of color television and large screens, motion picture cinemas continued. In fact with the rise of television's predominance, film began to become more respected as an artistic medium by contrast due the low general opinion of the quality of average television content[citation needed]In the 1980s, when the widespread availability of inexpensive videocassette recorders enabled people to select films for home viewing, industry analysts again wrongly predicted the death of the local cinemas.[citation needed]

In the 1990s and 2000s the development of digital DVD players, home theater amplification systems with surround sound and subwoofers, and large LCD or plasma screens enabled people to select and view films at home with greatly improved audio and visual reproduction[citation needed]. These new technologies provided audio and visual that in the past only local cinemas had been able to provide: a large, clear widescreen presentation of a film with a full-range, high-quality multi-speaker sound system. Once again industry analysts predicted the demise of the local cinema. Local cinemas will be changing in the 2000s and moving towards digital screens, a new approach which will allow for easier and quicker distribution of films (via satellite or hard disks), a development which may give local theaters a reprieve from their predicted demise.[citation needed] The cinema now faces a new challenge from home video by the likes of a new High Definition format, Blu-ray, which can provide full HD 1080p video playback at near cinema quality[citation needed]Video formats are gradually catching up with the resolutions and quality that film offers, 1080p in Blu-ray offers a pixel resolution of 1920×1080 a leap from the DVD offering of 720×480 and the paltry 330×480 offered by the first home video standard VHS[citation needed]The maximum resolutions that film currently offers are 2485×2970 or 1420×3390, UHD, a future digital video format, will offer a massive resolution of 7680×4320, surpassing all current film resolutions. The only viable competitor to these new innovations is IMAX which can play film content at an extreme 10000×7000 resolution[citation needed].

Despite the rise of all new technologies, the development of the home video market and a surge of online copyright infringement, 2007 was a record year in film that showed the highest ever box-office grosses. Many expected film to suffer as a result of the effects listed above but it has flourished, strengthening film studio expectations for the future[citation needed].

See also

Film portal
  • Category:Film
  • Cinematic techniques
  • Digital cinema
  • List of basic film topics
  • List of film awards
  • List of film festivals
  • List of film journals and magazines
  • List of film topics
  • Lists of films
  • List of video-related topics
  • List of years in film
  • Lost film
  • Web film

Notes

  1. ^ Bollywood Hots Up cnn.com. Retrieved June 23, 2007
  2. ^ Silent Film Speed
  3. ^ Sharing Pix is Risky Business variety.com. Retrieved June 23, 2007.
  4. ^ Savage, Mark (2006-12-19). "Hanna Barbera's golden age of animation". BBC News. http://news.bbc.co.uk/1/hi/entertainment/6193603.stm. Retrieved on 2007-01-25. 
  5. ^ http://cinematreasures.org/theater/8855/
  6. ^ Timothy McNulty (2005-06-19). "You saw it here first: Pittsburgh's Nickelodeon introduced the moving picture theater to the masses in 1905". Pittsburgh Post-Gazette. http://www.post-gazette.com/pg/05170/522854.stm. Retrieved on 2007-01-25. 
  7. ^ "Pre-Nickelodeon/Nickelodeon". University of Maryland Libraries. 2005-07-05. http://www.lib.umd.edu/RARE/Exhibits/Headley/styles1.html. Retrieved on 2007-01-25. 
  8. ^ a b PBS Frontline: The Monster that Ate Hollywood: Anatomy of a Monster: Now Playing ... And Playing ... And Playing ... pbs.org. Retrieved June 23, 2007

References

  • Acker, Ally (1991). Reel Women: Pioneers of the Cinema, 1896 to the Present. New York: Continuum. ISBN 0826404995. 
  • Basten, Fred E. (1980). Glorious Technicolor: The Movies' Magic Rainbow. Cranbury, NJ: AS Barnes & Company. ISBN 0498023176. 
  • Basten, Fred E. (writer); Peter Jones (director and writer); Angela Lansbury (narrator). (1998). Glorious Technicolor [Documentary]. Turner Classic Movies.
  • Casetti, Francesco (1999). Theories of Cinema, 1945-1995. Austin, TX: University of Texas Press. ISBN 0292712073. 
  • Cook, Pam (2007). The Cinema Book, Third Edition. London: British Film Institute. ISBN 9781844571932. 
  • Faber, Liz, & Walters, Helen (2003). Animation Unlimited: Innovative Short Films Since 1940. London: Laurence King, in association with Harper Design International. ISBN 1856693465. 
  • Hagener, Malte, & Töteberg, Michael (2002). Film: An International Bibliography. Stuttgart: Metzler. ISBN 3476015238. 
  • Hill, John, & Gibson, Pamela Church (1998). The Oxford Guide to Film Studies. Oxford; New York: Oxford University Press. ISBN 0198711247. 
  • King, Geoff (2002). New Hollywood Cinema: An Introduction. New York: Columbia University Press. ISBN 0231127596. 
  • Ledoux, Trish, & Ranney, Doug, & Patten, Fred (1997). Complete Anime Guide: Japanese Animation Film Directory and Resource Guide. Issaquah, WA: Tiger Mountain Press. ISBN 0964954257. 
  • Merritt, Greg (2000). Celluloid Mavericks: A History of American Independent Film. New York: Thunder's Mouth Press. ISBN 1560252324. 
  • Nowell-Smith, Geoffrey (1999). The Oxford History of World Cinema. Oxford; New York: Oxford University Press. ISBN 0198742428. 
  • Rocchio, Vincent F. (2000). Reel Racism: Confronting Hollywood's Construction of Afro-American Culture. Boulder, CO: Westview Press. ISBN 0813367107. 
  • Schrader, Paul (Spring 1972). "Notes on Film Noir". Film Comment Vol. 8 (Issue 1): 8–13. ISSN 0015-119X. 
  • Schultz, John (writer and director); James Earl Jones (narrator). (1995). The Making of 'Jurassic Park' [Documentary]. Amblin Entertainment.
  • Thackway, Melissa (2003). Africa Shoots Back: Alternative Perspectives in Sub-Saharan Francophone African Film. Bloomington, IL: Indiana University Press. ISBN 0852555768. 
  • Vogel, Amos (1974). Film as a Subversive Art. New York: Random House. ISBN 0394490789.

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Financial market

(From Wikipedia, the free encyclopedia)

In economics, a financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect the efficient market hypothesis.

Financial markets have evolved significantly over several hundred years and are undergoing constant innovation to improve liquidity.

Both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded) exist. Markets work by placing many interested buyers and sellers in one "place", thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy.

In finance, financial markets facilitate--

    * The raising of capital (in the capital markets);

    * The transfer of risk (in the derivatives markets);

    * International trade (in the currency markets)

--and are used to match those who want capital to those who have it.

Typically a borrower issues a receipt to the lender promising to pay back the capital. These receipts are securities which may be freely bought or sold. In return for lending money to the borrower, the lender will expect some compensation in the form of interest or dividends.

Contents

    * 1 Definition

    * 2 Types of financial markets

    * 3 Raising capital

          o 3.1 Lenders

          o 3.2 Borrowers

    * 4 Derivative products

    * 5 Currency markets

    * 6 Analysis of financial markets

    * 7 Financial markets in popular culture

          o 7.1 Financial markets slang

    * 8 See also

    * 9 Notes

    * 10 References

 Definition

The term financial markets can be a cause of much confusion.

Financial markets could mean:

1. organizations that facilitate the trade in financial securities. i.e. Stock exchanges facilitate the trade in stocks, bonds and warrants.

2. the coming together of buyers and sellers to trade financial securities. i.e. stocks and shares are traded between buyers and sellers in a number of ways including: the use of stock exchanges; directly between buyers and sellers etc.

In academia, students of finance will use both meanings but students of economics will only use the second meaning.

Financial markets can be domestic or they can be international.

 Types of financial markets

The financial markets can be divided into different subtypes:

    * Capital markets which consist of:

          o Stock markets, which provide financing through the issuance of shares or common stock, and enable the subsequent trading thereof.

          o Bond markets, which provide financing through the issuance of Bonds, and enable the subsequent trading thereof.

    * Commodity markets, which facilitate the trading of commodities.

    * Money markets, which provide short term debt financing and investment.

    * Derivatives markets, which provide instruments for the management of financial risk.

          o Futures markets, which provide standardized forward contracts for trading products at some future date; see also forward market.

    * Insurance markets, which facilitate the redistribution of various risks.

    * Foreign exchange markets, which facilitate the trading of foreign exchange.

The capital markets consist of primary markets and secondary markets. Newly formed (issued) securities are bought or sold in primary markets. Secondary markets allow investors to sell securities that they hold or buy existing securities.

 Raising capital

To understand financial markets, let us look at what they are used for, i.e. what is their purpose?

Without financial markets, borrowers would have difficulty finding lenders themselves. Intermediaries such as banks help in this process. Banks take deposits from those who have money to save. They can then lend money from this pool of deposited money to those who seek to borrow. Banks popularly lend money in the form of loans and mortgages.

More complex transactions than a simple bank deposit require markets where lenders and their agents can meet borrowers and their agents, and where existing borrowing or lending commitments can be sold on to other parties. A good example of a financial market is a stock exchange. A company can raise money by selling shares to investors and its existing shares can be bought or sold.

The following table illustrates where financial markets fit in the relationship between lenders and borrowers:

Relationship between lenders and borrowers

Lenders            Financial Intermediaries             Financial Markets         Borrowers

Individuals

Companies       Banks

Insurance Companies

Pension Funds

Mutual Funds

            Interbank

Stock Exchange

Money Market

Bond Market

Foreign Exchange         Individuals

Companies

Central Government

Municipalities

Public Corporations

 Lenders

Many individuals are not aware that they are lenders, but almost everybody does lend money in many ways. A person lends money when he or she:

    * puts money in a savings account at a bank;

    * contributes to a pension plan;

    * pays premiums to an insurance company;

    * invests in government bonds; or

    * invests in company shares.

Companies tend to be borrowers of capital. When companies have surplus cash that is not needed for a short period of time, they may seek to make money from their cash surplus by lending it via short term markets called money markets.

There are a few companies that have very strong cash flows. These companies tend to be lenders rather than borrowers. Such companies may decide to return cash to lenders (e.g. via a share buyback.) Alternatively, they may seek to make more money on their cash by lending it (e.g. investing in bonds and stocks.)

 Borrowers

Individuals borrow money via bankers' loans for short term needs or longer term mortgages to help finance a house purchase.

Companies borrow money to aid short term or long term cash flows. They also borrow to fund modernisation or future business expansion.

Governments often find their spending requirements exceed their tax revenues. To make up this difference, they need to borrow. Governments also borrow on behalf of nationalised industries, municipalities, local authorities and other public sector bodies. In the UK, the total borrowing requirement is often referred to as the public sector borrowing requirement (PSBR).

Governments borrow by issuing bonds. In the UK, the government also borrows from individuals by offering bank accounts and Premium Bonds. Government debt seems to be permanent. Indeed the debt seemingly expands rather than being paid off. One strategy used by governments to reduce the value of the debt is to influence inflation.

Municipalities and local authorities may borrow in their own name as well as receiving funding from national governments. In the UK, this would cover an authority like Hampshire County Council.

Public Corporations typically include nationalised industries. These may include the postal services, railway companies and utility companies.

Many borrowers have difficulty raising money locally. They need to borrow internationally with the aid of Foreign exchange markets.

 Derivative products

During the 1980s and 1990s, a major growth sector in financial markets is the trade in so called derivative products, or derivatives for short.

In the financial markets, stock prices, bond prices, currency rates, interest rates and dividends go up and down, creating risk. Derivative products are financial products which are used to control risk or paradoxically exploit risk. It is also called financial economics.

 Currency markets

    Main article: Foreign exchange market

Seemingly, the most obvious buyers and sellers of foreign exchange are importers/exporters. While this may have been true in the distant past, whereby importers/exporters created the initial demand for currency markets, importers and exporters now represent only 1/32 of foreign exchange dealing, according to BIS.[1]

The picture of foreign currency transactions today shows:

    * Banks and Institutions

    * Speculators

    * Government spending (for example, military bases abroad)

    * Importers/Exporters

    * Tourists

 Analysis of financial markets

    See Statistical analysis of financial markets, statistical finance

Much effort has gone into the study of financial markets and how prices vary with time. Charles Dow, one of the founders of Dow Jones & Company and The Wall Street Journal, enunciated a set of ideas on the subject which are now called Dow Theory. This is the basis of the so-called technical analysis method of attempting to predict future changes. One of the tenets of "technical analysis" is that market trends give an indication of the future, at least in the short term. The claims of the technical analysts are disputed by many academics, who claim that the evidence points rather to the random walk hypothesis, which states that the next change is not correlated to the last change.

The scale of changes in price over some unit of time is called the volatility. It was discovered by Beno�t Mandelbrot that changes in prices do not follow a Gaussian distribution, but are rather modeled better by L�vy stable distributions. The scale of change, or volatiliy, depends on the length of the time unit to a power a bit more than 1/2. Large changes up or down are more likely than what one would calculate using a Gaussian distribution with an estimated standard deviation.

 Financial markets in popular culture

    Gordon Gekko is a famous caricature of a rogue financial markets operator, famous for saying "greed ... is good".

Oly negative stories about financial markets tend to make the news. The general perception, for those not involved in the world of financial markets is of a place full of crooks and con artists. Big stories like the Enron scandal serve to enhance this view.

Stories that make the headlines involve the incompetent, the lucky and the downright skillful. The Barings scandal is a classic story of incompetence mixed with greed leading to dire consequences. Another story of note is that of Black Wednesday, when sterling came under attack from hedge fund speculators. This led to major problems for the United Kingdom and had a serious impact on its course in Europe. A commonly recurring event is the stock market bubble, whereby market prices rise to dizzying heights in a so called exaggerated bull market. This is not a new phenomenon; indeed the story of Tulip mania in the Netherlands in the 17th century illustrates an early recorded example.

Financial markets are merely tools. Like all tools they have both beneficial and harmful uses. Overall, financial markets are used by honest people. Otherwise, people would turn away from them en masse. As in other walks of life, the financial markets have their fair share of rogue elements.

 Financial markets slang

    * Big swinging dick, a highly successful financial markets trader. The term was made popular in the book Liar's Poker, by Michael Lewis

    * Geek, a Quant

    * Grim, an ageless man known for his whistle and tendency to relate current events to financial market[citation needed]

    * Nerd, a Quant

    * Quant, a quantitative analyst skilled in the black arts of PhD level (and above) mathematics and statistical methods

    * Rocket scientist, a financial consultant at the zenith of mathematical and computer programming skill. They are able to invent derivatives of frightening complexity and construct sophisticated pricing models. They generally handle the most advanced computing techniques adopted by the financial markets since the early 1980s. Typically, they are physicists and engineers by training; rocket scientists do not necessarily build rockets for a living.

    * White Knight, a friendly party in a takeover bid. Used to describe a party that buys the shares of an organization to help prevent the takeover of that organization by another party (that is making a hostile bid).
Business

A business (also called firm or an enterprise) is a legally recognized organizational entity designed to provide goods and/or services to consumers or corporate entities such as governments, charities or other businesses. Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit to increase the wealth of owners. The owners and operators of a business have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk. Notable exceptions include cooperative businesses and state-owned enterprises. Socialistic systems involve either government, public, or worker ownership of most sizable businesses.

 The etymology of "business" relates to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope � the singular usage (above) to mean a particular company or corporation, the generalized usage to refer to a particular market sector, such as "the music business" and compound forms such as agribusiness, or the broadest meaning to include all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate.

 Business Studies, the study of the management of individuals to maintain collective productivity in order to accomplish particular creative and productive goals (usually to generate profit), is taught as an academic subject in many schools.

Contents

      * 1 Basic forms of ownership

    * 2 Classifications

    * 3 Organization

    * 4 Management

    * 5 Government regulation

          o 5.1 Organizing a business

          o 5.2 Commercial law

          o 5.3 Capital

          o 5.4 Intellectual property

          o 5.5 Exit plans

    * 6 See also

    * 7 External links

          o 7.1 General

    * 8 Notes and references

 

 Basic forms of ownership

 

Although forms of business ownership vary by jurisdiction, there are several common forms:

     * Sole proprietorship: A sole proprietorship is a business owned by one person. The owner may operate on his or her own or may employ others. The owner of the business has total and unlimited personal liability of the debts incurred by the business.

     * Partnership: A partnership is a form of business in which two or more people operate for the common goal of making profit. Each partner has total and unlimited personal liability of the debts incurred by the partnership. There are three typical classifications of partnerships: general partnerships, limited partnerships, and limited liability partnerships.

     * Corporation: A business corporation is a for-profit, limited liability entity that has a separate legal personality from its members. A corporation is owned by multiple shareholders and is overseen by a board of directors, which hires the business's managerial staff.

     * Cooperative: Often referred to as a "co-op business" or "co-op", a cooperative is a for-profit, limited liability entity that differs from a corporation in that it has members, as opposed to shareholders, who share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives. Cooperatives are fundamental to the ideology of economic democracy.

 For a country-by-country listing of legally recognized business forms, see Types of business entity.

  Classifications

Wall Street, Manhattan is the location of the New York Stock Exchange and is often used as a symbol for the world of business.[citation needed]

Wall Street, Manhattan is the location of the New York Stock Exchange and is often used as a symbol for the world of business.[citation needed]

 There are many types of businesses, and, as a result, businesses are classified in many ways. One of the most common focuses on the primary profit-generating activities of a business:

     * Manufacturers produce products, from raw materials or component parts, which they then sell at a profit. Companies that make physical goods, such as cars or pipes, are considered manufacturers.

    * Service businesses offer intangible goods or services and typically generate a profit by charging for labor or other services provided to government, other businesses or consumers. Organizations ranging from house decorators to consulting firms to restaurants and even to entertainers are types of service businesses.

    * Retailers and Distributors act as middle-men in getting goods produced by manufacturers to the intended consumer, generating a profit as a result of providing sales or distribution services. Most consumer-oriented stores and catalogue companies are distributors or retailers. See also: Franchising

    * Agriculture and mining businesses are concerned with the production of raw material, such as plants or minerals.

    * Financial businesses include banks and other companies that generate profit through investment and management of capital.

    * Information businesses generate profits primarily from the resale of intellectual property and include movie studios, publishers and packaged software companies.

    * Utilities produce public services, such as heat, electricity, or sewage treatment, and are usually government chartered.

    * Real estate businesses generate profit from the selling, renting, and development of properties, homes, and buildings.

    * Transportation businesses deliver goods and individuals from location to location, generating a profit on the transportation costs

 There are many other divisions and subdivisions of businesses. The authoritative list of business types for North America is generally considered to be the North American Industry Classification System, or NAICS. The equivalent European Union list is the NACE.

  Organization

            This section does not cite any references or sources.

Please help improve this section by adding citations to reliable sources. Unverifiable material may be challenged and removed. (March 2008)

Advertisement of Victoria's Secret. Advertisement is an important aspect of business.

Advertisement of Victoria's Secret. Advertisement is an important aspect of business.

 Most businesses must accomplish similar functions regardless of size, legal structure or industry. These functions are often organized into departments. Common departments include (but are not limited to):

 Human Resources

    Typically responsible for hiring, firing, payroll, benefits, etc.

Finance

    responsible for managing the enterprises financial resources[1]

         Budgeting and forecasting

            planning how the enterprise wants things to happen

        Cash and treasury management

            ensuring the enterprise has money when it's needed

        Accounts payable and receivable

            ensuring the enterprise receives what it's owed and pay what it owes

        Tax planning/filing and reporting

            meeting obligations to the government

        Risk management

            ensuring the enterprise doesn't get surprised by something unfavorable

        External and internal (management) reporting

            providing visibility into the enterprise for those who need it through financial reporting and other types of reporting

 Marketing and sales

    responsible for selling the business' goods or services to the customer and for managing the relationships with the customer

         Marketing

            Typically responsible for promoting interest in, and generating demand for, the business' products or services, and positioning them within the market

        Sales

            finding likely purchasers and obtaining their agreement (known as a contract) to buy the business' products or services

 Operations

    makes the product or delivers the service

         Production

            produces the raw materials into the delivered goods, if they require processing

        Customer service

            supports customers who need help with the goods or services

 Procurement

    responsible for acquiring the goods and services necessary for the business. Sometimes organized as:

         Strategic sourcing

            determines the business' needs and plans for acquiring the necessary raw materials and services for the business

        Purchasing

            processes the purchase orders and related transactions

 Research and Development

    tests to create new products and to determine their viability (e.g. pilot plants)

Information Technology

    manages the business' computer and data assets

Communications/Public Relations

    responsible for communicating to the outside world

Administration

    provides administrative support to the other departments (such as typing, filing, etc.)

Internal Audit

    an independent control function typically accountable to the Board of Directors for reporting on the proper functioning of the other departments

 Management is sometimes listed as a "department" but typically refers to the top level of leadership within the business regardless of their functional role.

  Management

            Please help improve this section by expanding it. Further information might be found on the talk page or at requests for expansion. (August 2007)

 

The study of the efficient and effective operation of a business is called management. The main branches of management are financial management, marketing management, human resource management, strategic management, production management, service management, information technology management, and business intelligence.

  Government regulation

            This section may require cleanup to meet Wikipedia's quality standards.

Please improve this article if you can. (August 2007)

Globe icon

            The examples and perspective in this article or section may not represent a worldwide view of the subject.

Please improve this article or discuss the issue on the talk page.

The Bank of England in Threadneedle Street, London, England.

The Bank of England in Threadneedle Street, London, England.

 Most legal jurisdictions specify the forms of ownership that a business can take, creating a body of commercial law for each type.

  Organizing a business

 The major factors affecting how a business is organized are usually:

     * The size and scope of the business, and its anticipated management and ownership. Generally a smaller business is more flexible, while larger businesses, or those with wider ownership or more formal structures, will usually tend to be organized as partnerships or (more commonly) corporations. In addition a business which wishes to raise money on a stock market or to be owned by a wide range of people will often be required to adopt a specific legal form to do so.

    * The sector and country. Private profit making businesses are different from government owned bodies. In some countries, certain businesses are legally obliged to be organized certain ways.

    * Limited liability. Corporations, limited liability partnerships, and other specific types of business organizations protect their owners from business failure by doing business under a separate legal entity with certain legal protections. In contrast, unincorporated businesses or persons working on their own are usually not so protected.

    * Tax advantages. Different structures are treated differently in tax law, and may have advantages for this reason.

    * Disclosure and compliance requirements. Different business structures may be required to make more or less information public (or reported to relevant authorities), and may be bound to comply with different rules and regulations.

 Many businesses are operated through a separate entity such as a corporation, limited partnership or limited liability company. Most legal jurisdictions allow people to organize such an entity by filing certain charter documents with the relevant Secretary of State or equivalent and complying with certain other ongoing obligations. The relationships and legal rights of shareholders, limited partners, or members are governed partly by the charter documents and partly by the law of the jurisdiction where the entity is organized. Generally speaking, shareholders in a corporation, limited partners in a limited partnership, and members in a limited liability company are shielded from personal liability for the debts and obligations of the entity, which is legally treated as a separate "person." This means that unless there is misconduct, the owner's own possessions are strongly protected in law, if the business does not succeed.

 Where two or more individuals own a business together but have failed to organize a more specialized form of vehicle, they will be treated as a general partnership. The terms of a partnership are partly governed by a partnership agreement if one is created, and partly by the law of the jurisdiction where the partnership is located. No paperwork or filing is necessary to create a partnership, and without an agreement, the relationships and legal rights of the partners will be entirely governed by the law of the jurisdiction where the partnership is located.

 A single person who owns and runs a business is commonly known as a sole proprietor, whether he or she owns it directly or through a formally organized entity.

 A few relevant factors to consider in deciding how to operate a business include:

    1. General partners in a partnership (other than a limited liability partnership), plus anyone who personally owns and operates a business without creating a separate legal entity, are personally liable for the debts and obligations of the business.

   2. Generally, corporations are required to pay tax just like "real" people. In some tax systems, this can give rise to so-called double taxation, because first the corporation pays tax on the profit, and then when the corporation distributes its profits to its owners, individuals have to include dividends in their income when they complete their personal tax returns, at which point a second layer of income tax is imposed.

   3. In most countries, there are laws which treat small corporations differently than large ones. They may be exempt from certain legal filing requirements or labor laws, have simplified procedures in specialized areas, and have simplified, advantageous, or slightly different tax treatment.

   4. In order to "go public" (sometimes called IPO) -- which basically means to allow a part of the business to be owned by a wider range of investors or the public in general -- you must organize a separate entity, which is usually required to comply with a tighter set of laws and procedures. Most public entities are corporations that have sold shares, but increasingly there are also public LLCs that sell units (sometimes also called shares), and other more exotic entities as well (for example, REITs in the USA, Unit Trusts in the UK). However, you cannot take a general partnership "public."

  Commercial law

 Most commercial transactions are governed by a very detailed and well-established body of rules that have evolved over a very long period of time, it being the case that governing trade and commerce was a strong driving force in the creation of law and courts in Western civilization.

 As for other laws that regulate or impact businesses, in many countries it is all but impossible to chronicle them all in a single reference source. There are laws governing treatment of labor and generally relations with employees, safety and protection issues (OSHA or Health and Safety), anti-discrimination laws (age, gender, disabilities, race, and in some jurisdictions, sexual orientation), minimum wage laws, union laws, workers compensation laws, and annual vacation or working hours time.

 In some specialized businesses, there may also be licenses required, either due to special laws that govern entry into certain trades, occupations or professions, which may require special education, or by local governments who just want your money. Professions that require special licenses run the gamut from law and medicine to flying airplanes to selling liquor to radio broadcasting to selling investment securities to selling used cars to roofing. Local jurisdictions may also require special licenses and taxes just to operate a business without regard to the type of business involved.

 Some businesses are subject to ongoing special regulation. These industries include, for example, public utilities, investment securities, banking, insurance, broadcasting, aviation, and health care providers. Environmental regulations are also very complex and can impact many kinds of businesses in unexpected ways.

  Capital

 When businesses need to raise money (called 'capital'), more laws come into play. A highly complex set of laws and regulations govern the offer and sale of investment securities (the means of raising money) in most Western countries. These regulations can require disclosure of a lot of specific financial and other information about the business and give buyers certain remedies. Because "securities" is a very broad term, most investment transactions will be potentially subject to these laws, unless a special exemption is available.

 Capital may be raised through private means, by public offer (IPO) on a stock exchange, or in many other ways. Major stock exchanges include the New York Stock Exchange and Nasdaq (USA), the London Stock Exchange (UK), the Tokyo Stock Exchange (Japan), and so on. Most countries with capital markets have at least one.

 Business that have gone "public" are subject to extremely detailed and complicated regulation about their internal governance (such as how executive officers' compensation is determined) and when and how information is disclosed to the public and their shareholders. In the United States, these regulations are primarily implemented and enforced by the United States Securities and Exchange Commission (SEC). Other Western nations have comparable regulatory bodies.

 As noted at the beginning, it is impossible to enumerate all of the types of laws and regulations that impact on business today. In fact, these laws have become so numerous and complex, that no business lawyer can learn them all, forcing increasing specialization among corporate attorneys. It is not unheard of for teams of 5 to 10 attorneys to be required to handle certain kinds of corporate transactions, due to the sprawling nature of modern regulation. Commercial law spans general corporate law, employment and labor law, healthcare law, securities law, M&A law (who specialize in acquisitions), tax law, ERISA law (ERISA in the United States governs employee benefit plans), food and drug regulatory law, intellectual property law (specializing in copyrights, patents, trademarks and such), telecommunications law, and more.

 In Thailand, for example, it is necessary to register a particular amount of capital for each employee, and pay a fee to the government for the amount of capital registered. There is no legal requirement to prove that this capital actually exists, the only requirement is to pay the fee. Overall, processes like this are detrimental to the development and GDP of a country, but often exist in "feudal" developing countries. 

 Intellectual property 

Businesses often have important "intellectual property" that needs protection from competitors in order for the company to stay profitable. This could require patents or copyrights or preservation of trade secrets. Most businesses have names, logos and similar branding techniques that could benefit from trademarking. Patents and copyrights in the United States are largely governed by federal law, while trade secrets and trademarking are mostly a matter of state law. Because of the nature of intellectual property, a business needs protection in every jurisdiction in which they are concerned about competitors. Many countries are signatories to international treaties concerning intellectual property, and thus companies registered in these countries are subject to national laws bound by these treaties.

  Exit plans

Businesses can be bought and sold. Business owners often refer to their plan of disposing of the business as an "exit plan." Common exit plans include IPOs, MBOs and mergers with other businesses.
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