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The 10k vs. the Annual Report

In: Business and Management

Submitted By lxolx
Words 612
Pages 3
The 10K vs. the Annual Report eBay Inc. is one of the largest e-commerce businesses listed in the Fortune 500. Like other companies, eBay Inc. prepares an Annual Report and a 10K every year in which it discloses each activity and financial performance. eBay Inc.’s Annual Report and 10K are designed for different audiences. The Annual Report provides information about the company’s activities and financial performance for shareholders and investors. The 10K is an official document that publicly traded companies must file with the U.S. Securities and Exchange Commission (SEC). The Annual Report provides specific growth of each activity such as eBay marketplace, PayPal, and Skype to increase the confidence of its shareholders and investors. The 10K provides detailed background and financial information targeted towards business professionals and the SEC. eBay Inc.’s 2009 Annual Report was a letter with a lot of details and numbers to demonstrate the performance. The CEO, John Donahoe, listed specific activities’ revenues and growths such as “In November 2009, we sold approximately 70 percent of Skype allowing us to focus on our two core growth engines: payments and e-commerce.” Also, Mr. Donahoe compared the growth of each activity to previous years. For example, in the first half of the year, on eBay marketplace, “we delivered $8.7 billion in revenues, a 2 percent increase from the prior year.” Mr. Donahoe used sincere language to build a strong relationship with eBay Inc.’s shareholders and investors. Overall, eBay Inc.’s Annual Report gave an understanding and confidence to its shareholders and investors. The 10K is formal document, where business professionals and the SEC can get detailed information about eBay Inc. Such as the background of eBay Inc.: “eBay Inc. was formed as a sole proprietorship in September 1995 and was incorporated in California in May 1996.” The format of eBay Inc’s 10K satisfied all the SEC’s requirements. eBay Inc.’s 10K has the same content as other Fortune 500 companies such as Business, Risk of factors, and Properties. The 10K has one hundred and thirty pages. The purpose of the 10K is for the SEC to ensure the company upholds the commission's regulation and business standards. The audiences of eBay Inc.’s Annual Report is shareholders and investors. The Annual Report persuades shareholders and investors to keep and invest money in its company, so that eBay Inc. has more capital to expand. For instance, Mr. Donahoe gave an example of specific worldwide growth such as “Korea’s leading online marketplace, gave us a leadership position in a key e-commerce market in Asia.” He gave confidence to his shareholders and investors assuring that they are going to enter the Asian marketplace and get more dividends. Also, Mr. Donahoe targeted his audience by helping them understand the growth of each activity such as “PayPal had an exceptional 2009, ending the year with net total payment volume (TPV) of $71 billion – a 19 percent increase over 2008 – and 81 million active registered accounts globally.” On the other hand, eBay Inc’s 10K targets business professionals and the SEC. Also shareholders and investors who need financial statements could find them in the 10K. Business professionals and the SEC can get all the information about eBay Inc. such as the background, properties, and financial statements in the 10K.
In short, different communication strategies are used in eBay Inc.’s Annual Report and 10K to target and persuade different audiences. The Annual Report used persuasive and sincere language, and had fewer pages to target shareholders and investors. On the contrary, the 10K used formal and professional language with a lot of details to target business professionals and the SEC.

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