Checkpoint Week 2 Bus/210

Bus 210 Week 2 CheckpointAn example of a joint stock company would be the incinerator plant my husbandused to work for. Once an employee was permanently hired on with the company, thecompany automatically opened a 401K plan in the employee’s name. Even if theemployee chose not to invest his or her money into the plan, the company automaticallyinvested 4% of the employee’s weekly earnings into the account. The employees couldchoose to personally manage where they wanted to invest their money, but all employeesheld stock in the company. After an employee was employed with the company for a period of 2 years they could roll over the money the company had invested for them;along with any they themselves had invested, if the employee changed jobs.This company could again be used in the limited-liability example. If thecompany had gone bankrupt any personal money the employees had would not be atstake for reimbursement to creditors. Only the money the company’s employees hadinvested would be at stake.A law firm is a good example of a partnership. Most law firms are partnerships because they consist of two or more licensed attorneys who have put together money toform a business and agree to work together for the sake of make the business profitable.I could use the daycare I used to run when my children were babies as an exampleof a sole-proprietorship business. I ran the business from my home and was registeredwith the state to provide subsidized daycare to eligible families. As a sole-proprietor the

cost of the business fell on me and the profits were mine alone. I was responsible for allmy personal bookkeeping, as well as providing my customers with weekly statements for their bookkeeping and tax purposes. I had my own EIN number and was responsible for filing and paying my taxes.