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Business Organization

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Business Organization
Megan Jutras
Bus 210
January 26, 2012
Karla Rogers

Business Organization
There are various forms of business organizations, such as joint-stock companies, limited liability companies, partnerships, and sole proprietorships. The following are examples of business scenarios for these four organizations. First, a business scenario of a joint-stock company would be a banker, who along with other bankers, which invest some money into an entrepreneur’s up-and-coming company. The banker would then receive stock in that venture (such as a shipping company). All the bankers, along with the entrepreneur, would share the company’s stock, thereby making it a “joint-stock” company. Secondly, a well-known limited-liability company would be Microsoft. Microsoft began as this type of company, which prevents creditors from seizing the personal wealth of Microsoft’s stockholders to pay the company’s debt. If Microsoft goes bankrupt, its creditors cannot seek personal wealth of its stockholders for reimbursement. Only the money stockholders have initially invested in Microsoft is at risk. Thirdly is partnership, which would be a dental office with two licensed dentists who partner together. They agree to pool their talent and resources by establishing the company in which they are the only stockholders and owners. The last business scenario is sole proprietorship, which would be my grandfather’s electricity company. This is a non-incorporated business entirely owned by him. This is also the simplest form of business organization to start and maintain. The business has no existence apart from its owner, and its liabilities are the owner’s personal liabilities. My grandfather undertakes all financial risks associated with the business, the rewards, income, it’s all included on his personal tax returns.

Reference
Jones, G. R. (2007). Introduction to...

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