Bisiness Organization

Business Organization-Week 2

Kayla D. Cloud

BUS/210

September 10, 2012

Dr. Diane Garvey

In business today there are several ways to organize them. The first would be a joint-

stock company. In this type of business the actual owner of the business would sell stock

certificate's for partial percentage ownership of the company to investor's and guaranteeing them

a right to a certain percentage of the profits. The only downfall to this type of business is that

anyone whom owned the stock are considered liable for any debt the company may incur if it

should fail. An example would be a individual buying into a certain fast food restaurant.

The second type is a limited liability. This is a legal system set up to avoid and personal

liability of debt for the investors. Their only liability would be the risk of losing their initial

investment. I would say an example of this would be a Hospital that has a board of investor's.

The third type is Partnership. This exists when two or more people go into business

together. They are the only ones at risk because they are the sole stockholder's and owners

because they have pooled there knowledge and resources. This is the type of business my

husband, myself and his mother are going to open once I am out of school. We will be the only

employee's and the only investor's who are responsible for everything.

The fourth and final is a sole proprietorship. This is a non incorporated business who has

one owner and is solely responsible for everything. An example of this would be a Hair Dresser

who works alone.

Reference:

1. Jones, G. R. (2007). Introduction to business: How companies create value for people. New York, NY: McGraw-Hill/Irwin