Business Organization
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Business Organization
A joint-stock company is a partnership or corporation between two parties. An electronic company has stocks that are issued to each party in the company in return for each contribution. The shareholders are allowed to transfer or sell their investment at any point in time by selling their stock to another party.
A limited liability Company is when the investors are only limited liable in case the business or the investors that were invested in go bankrupt. Creditors can only take what each investor has initially invested. If Joe invested into a company and the company went bankrupt after five years, because the company was an LLC, the creditors can only take what Joe has initially invested into the company.
A partnership is when a group of professionals come together with their ideas to create one company. The people who own this type of company are the ones who are both the owners and the stockholders for the company. Each member owns a percentage of the company. If Jon, Jane and Mike open up an antique store, each party would own an equal percentage such as 33.3% of the company. Jon would be in charge of accounting, Jane would be in charge of supplies, and Mike would be in charge of marketing.
A sole proprietorship is when it is a business owned by only one person. The person would be in charge of everything and is the only one reliable for the businesses ups and downs. If Matt was a dentist and wanted to open his own local dental business, he would be reliable for all the accounting, marketing, and the supplies for the business. He would be the only one to take care of the business if it were to fail.