Bus 210 Week 2 checkpoint Business Organization

Bus 210 Week 2 checkpoint Business Organization - to...

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An example of a joint stock company would be the incinerator plant, once an employee is permanently hired on with the company; the company automatically opens a 401K plan in the employee’s name. Even if the employee chose not to invest his or her money into the plan, the company automatically invests 4% of the employee’s weekly earnings into the account. The employees could choose to personally manage where they wanted to invest their money, but all employees held stock in the company. After an employee was employed with the company for a period of 2 years they could roll over the money the company had invested for them; along with any they themselves had invested, if the employee changed jobs. This company could again be used in the limited-liability example. If the company had gone bankrupt any personal money the employees had would not be at stake for reimbursement
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Unformatted text preview: to creditors. Only the money the companys employees had invested would be at stake. A law firm is a good example of a partnership. Most law firms are partnerships because they consist of two or more licensed attorneys who have put together money to form a business and agree to work together for the sake of make the business profitable. A daycare run from a private residency is an example of a sole-proprietorship business. A daycare is perfect for running the business from the home being registered with the state to provide subsidized daycare to eligible families. As a sole-proprietor the cost of the business fell on mean the profits the owners. Being responsible for all personal bookkeeping, as well providing the customers statements for their bookkeeping and tax purposes...
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This note was uploaded on 02/25/2012 for the course ECON 101 taught by Professor Abbasi during the Spring '11 term at American Jewish University.

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