Check_Point_Business_Organization_Bus_210

Check Point Business Organization Toni Roberts BUS/210 Instructor: Yolanda Ruiz August 7, 2013 According to Jones (2007); “In a joint-stock company an entrepreneur raises capital by issuing stock certificates of its ownership. This involves selling shares of the stock to investors that guarantee them the right to a certain percentage of the company’s profits” (p. 55). For instance, if I have shares in a large marketing firm, that means that I have a percentage of the vote concerning certain areas of the company including the management decisions and the board of elections. However, that also means that I have unlimited responsibility for the marketing firm’s outstanding unpaid liabilities as well (Investing Answers, 2013). Jones (2007) states that, “Limited liability is a legal system that prevents creditors from seizing the personal wealth of a company’s stockholders to pay a company’s debts” (p. 56). An example of a limited liability business that our text gives is of Bill Gates’ Microsoft business. According to Jones (2007), Gates made his Microsoft stock public in the late 1980s, allowing investors to buy stock in his company (p. 57). However, Gates also used the profits he generated from the sale of his stocks to reinvest to various other stocks to ensure that his wealth would be sustained (Jones, 2007, p. 27). ”In a partnership, skilled professionals such as bankers, merchants, doctors, lawyers, and accountants agree to pool their talent and resources by establishing a company in which they are the only stockholders and owners” (Jones, 2007, p. 56). Depending on how much each partner initially puts into their stock of the business will determine their individual percentage and how much of the profits each are allotted (Jones, 2007, p. 56). Two examples that the text mentioned of this business model are “Salmon Smith Barney, an investment banking company, and Accenture, a consulting company” (Jones, 2007, p. 56). “A sole proprietorship is a nonincorporated business entirely owned by one person” (Jones, 2007, p. 57). This is considered to be the simplest business model. An example of this kind of business model would be the kind of business I own. I currently run an online marketing blog where I teach other bloggers and webmasters how to market their products and services online. I am the sole owner of my business and I run it by myself. I take on all the financial gains or losses of my business and I claim them on my tax return (Jones, 2007). Reference Investing Answers. (2013). Joint Stock Company Definition & Example. Retrieved from http://www.investinganswers.com/financial-dictionary/businesses-corporations/joint-stock-company-3485 Jones, G. R. (2007). Introduction to business: How companies create value for people. New York, NY: McGraw-Hill/Irwin.