Bus Wk 2 Checkpoint Business Organization
Joint-Stock Company means that, a partnership or corporation between two parties. Stocks are issued the parties in return for each contribution. The shareholders are allowed to transfer or sell their investment interest at any point in time by selling their stock to another party.
Apple, INC. depicts this form of company.
Limited Liability Company (LLC) means that, the investors are only limited liable in case the business, the investors invested in, goes bankrupt. The creditors can only take what each investor has initially invested. The creditors must not take outside an investor’s investment, no personal monies that are not part of the investment.
Let us say I would invest into a company. That company would go bankrupt after five years, because the company was an LLC, Limited Liability Company, the creditors can only take what I have initially invested into the company.
Partnership means that, a group of skilled professionals can fuse their talents and expertise together to form one successful company. Only these professionals are the owners and stockholders for the company. Each professional will than be a partner of that particular company and receive a percentage which is based on how much money the partner invests into the company, the significance and importance of the partners skill and experience, and so on.
Jane, Joe, and Daphne open a sandwich store. All parties invest 33.3%, own equal parts of the company, and receive the same amount of revenue. Jane is in charge of the marketing, Joe orders the supplies, and Daphne is in charge of accounting.
Sole Proprietorship means that, a business owned by only one person. The person would not have any partners, nor would the business be “public”. The owner is 100% liable if the business would fail.
A lawyer would consider opening a law firm with sole proprietorship. The lawyer would be accountable for all financial parts connected with the law firm. If the lawyer would loose the firm, he or she would
Apple, INC. depicts this form of company.
Limited Liability Company (LLC) means that, the investors are only limited liable in case the business, the investors invested in, goes bankrupt. The creditors can only take what each investor has initially invested. The creditors must not take outside an investor’s investment, no personal monies that are not part of the investment.
Let us say I would invest into a company. That company would go bankrupt after five years, because the company was an LLC, Limited Liability Company, the creditors can only take what I have initially invested into the company.
Partnership means that, a group of skilled professionals can fuse their talents and expertise together to form one successful company. Only these professionals are the owners and stockholders for the company. Each professional will than be a partner of that particular company and receive a percentage which is based on how much money the partner invests into the company, the significance and importance of the partners skill and experience, and so on.
Jane, Joe, and Daphne open a sandwich store. All parties invest 33.3%, own equal parts of the company, and receive the same amount of revenue. Jane is in charge of the marketing, Joe orders the supplies, and Daphne is in charge of accounting.
Sole Proprietorship means that, a business owned by only one person. The person would not have any partners, nor would the business be “public”. The owner is 100% liable if the business would fail.
A lawyer would consider opening a law firm with sole proprietorship. The lawyer would be accountable for all financial parts connected with the law firm. If the lawyer would loose the firm, he or she would