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BUS 210 Business Organization

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BUS 210 Business Organization
Bus/210
University of Phoenix
Business Organization
A joint stock company sells shares of stock to investors that guarantee them the right to
a certain percentage of the company’s profits (Jones, G.R. 2007). An example of a joint
stock company was the Virginia Company in 1606. English merchants used joint stock
companies in the Seventeenth century to pool capital and share the risk associated with
trading voyages to Asia and Africa (Education Portal).
With a limited liability company, creditors cannot seek the personal wealth from its
stockholders for reimbursement (Jones, G.R. 2007). In other words, if a company is
sued or if they go bankrupt, the stockholders will not have the responsibility for the
debts. An example of a limited liability company is blockbuster.
A partnership is two or more people that combine their talents and capital to start a
business. Each partner is the only stockholders in the business. The profits of the
business are divided between the stockholders. If the employees that are hired perform
well, then they will have a chance to purchase stock to become a stockholder. An
example of a partnership company is the Wright Company. It was founded by Wilber and
Orville Wright.
A sole proprietorship is a business that is owned by just one person. The owner receives
all the profits but is also responsible for all the taxes and any legal matters. An example
of a sole proprietorship would be a friend of ours. She has a beauty salon by the name
of Skylight. She works her business from her home.
References
Jones, G. R. (2007). Introduction to business: How companies create value for people .
New York, NY: McGraw-Hill/Irwin
http://education-portal.com/academy/lesson/joint-stock-company-in-jamestown-history-
advantages-disadvantages.html#lesson

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BUS 210 Business Organization Bus/210 University of Phoenix ? Business Organization A joint stock company sells shares of stock to investors that guarantee them the right to a certain percentage of the company's profits (Jones, G.R. 2007). An example of a joint stock company was the Virginia Company ...
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