Appendix G Week 2. Checkpoint Business Organizations Resources:| Resource: Ch. 2 of Introduction to Business| Task: | Write a 200- to 300-word description of a business scenario, either real or fictional, that depicts each of the following forms of business organization:| Joint Stock Company| As a Joint Stock Company I have Chosen The British East India Company. It was granted a royal charter in 1600 with the intention of securing trade with India for England by Elizabeth I.
A Joint Stock company has two or more individuals own all the shares of a company. Shares of stock are given in return for each financial contribution and the shareholders are free to transfer their ownership at any time by selling their shares to other share holders. These are known as private companies and the shares are not open to public sale or trading. Any corporate losses have to be paid by the shareholders so there is unlimited liability. Encyclopedia Britannica)| Limited Liability Company| Basically a limited liability corporation means if the company goes belly up, the wealth, and possessions of the owners cannot be taken to repay any debts of the business, only assets in the name of the business can be used to pay off the debt. To my amazement I found that McDonalds is a Limited Liability Corporation. (McDonalds, LLC Corporate home)| Partnership| A partnership is just as it sounds two, or more, people own a business equally.
They share all responsibility for the business between them. An example of a Partnership could be the original Johnson and Johnson Company. Now it is a LLC and sells stock, but originally it was a very small company started by 3 brothers in 1886 making surgical dressings. When originally started this was a partnership. (Johnson &Johnson )| Sole Proprietorship| A sole proprietorship is a one man show. Owned, operated, and responsible for all debts by one person.
This does not mean they might not have employees, but all the operations of the business are the responsibility of the owner. A good example of this that we might know of is The Dallas Cowboys. Jerry Jones owns the stadium, the team, and the contracts with the players, and all the rights to the team and the name including the cheerleaders’ name. (NFL 2011)| National Football League Dallas Cowboys. com Johnson and Johnson Corporation McDonalds USA Encyclopedia Britannica inc. copyright 2011