Business Organization

Business - networks that can provide a steady flow of clientele however he did not have the capital to pay the bills if he were to rent out the

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Business Organization Joint- Stock Company- Linda’s entrepreneurial drive led her to ponder how she’d start and organize her business venture. She decided to attract outside investors and share the profits through stock ownership. Linda would own 30% of the stake while dividing the other 70% among ten investors. Everyone including Linda will have unlimited liability and worse case scenario, the borrowed money they use will be personally guaranteed by all of them individually. Limited Liability Company- Karen wants to start her own business but wants to make sure that none of her personal assets will be put on the line. She decided that a Limited Liability Company will be the best option to protect her against creditors. Her business will buy positive cash flow real estate with no personal assets on the line. The creditors will have only the business assets to come after if he were to bankrupt the company. Partnership- Phillip, a new graduate set his goals to start his own law practice. He had many
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: networks that can provide a steady flow of clientele however; he did not have the capital to pay the bills if he were to rent out the space for his practice. He decided to have his friend, April to help him. April is also a new law graduate and both decided they’ll be 50-50 partners, establishing a limited liability partnership. April will bring the capital for start up costs such as phone, fax, desks, chairs, rent, office supplies, and other things while Phillip will provide the first clients. The profits will be shared 50-50. Sole Proprietorship-Don wanted to start his business quick and didn’t want to go through too much paperwork so he decided to not incorporate his business. This meant all the debt the business will acquire, Don will be personally liable for it. He will be the one and only owner but will take on risks if he is not successful....
View Full Document

This note was uploaded on 04/28/2010 for the course BUS 210 taught by Professor Scottrought during the Spring '08 term at University of Phoenix.

Page1 / 2

Business - networks that can provide a steady flow of clientele however he did not have the capital to pay the bills if he were to rent out the

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online