Week 2 Checkpoint.jspa

Week 2 Checkpoint.jspa - investment and no personal assets....

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Week 2 – Checkpoint: Business Organization Jim, a very talented dentist is tired of dealing with corporate life and wants to start a practice of his own. Jim wants more decision making ability and ultimately make more money. He looks at the different business organizations and ponders what will best fit his needs. Jim has his own capital for the business but isn’t sure if he wants to do it all on his own. Jim knows what he wants but doesn’t know exactly what business organization to undertake. Jim knows a Joint Stock company gives him the capital he needs by offering ownership to the public. The public can buy a percentage of his business in the form of stocks. This is acceptable for Jim but if the business fails the investors could lose not only their investment but any other items of value they possess. In order to make this organization more enticing Jim feels a Limited Liability company would be better. With limited liability the investors still get stock option in the company but only stand to lose their original
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Unformatted text preview: investment and no personal assets. Jim liked both Joint Stock and Limited Liability but felt if he would have partners why not offer it to his friends. Jim looked into a Partnership which includes successful professionals buying jointly into a business. In this scenario the business is owned privately where the investors control the decisions of the business and split any profits equally based upon their share of the business. Jim liked this scenario but still didnt like having to share decision making amongst the investors. Finally Jim looked into a Sole Proprietorship. In this situation Jim would have sole control over decision making and he would reap all the benefits of profits. The only drawback Jim sees is he would have to use his own capital to start the business and endure all the risk. Jim was okay with this situation because he felt the benefits far outweigh the drawbacks....
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This note was uploaded on 08/21/2011 for the course BUS 101 taught by Professor Doe during the Spring '10 term at University of Phoenix.

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