A friend of mine and I are going to try and open a business doing accounting and bookkeeping but are having a hard time choosing if the form of business organization we will operate as will be joint stock, limited liability, partnership, or a sole proprietorship. A joint-stock company is where business owners raise capital by issuing stock certificates of its ownership. This means selling stock to investors that guarantee them a certain percentage of the company’s profit. This form looks good from the outside but if we were to select this form of organization and our business fails, then any people the business owed money to I(i.e. vendors) would be able to go after the stock holders personal wealth in order to recover the debt.
A limited liability company seems like a wiser choice that joint-stock. With this option if our company were to fail the people who the business owed could only go after the money the stockholders original invested. Another thing making this type of company attractive is that my friend and I could open under limited liability as the only stockholder and owners and we would only be risking anything we invested not our entire personal estates.
The last two options aren’t very appealing. A sole proprietorship would apply to us because there is more than one of us. Also these types of companies only exist as far as their success goes. A partnership, where two are more people pool their talent and capital and establish a company where they are the stockholder and the owner. This type of company can be taken “public” at any time and offers the option of adding more partners later on. Checkpoint Grading Form , Week Two Content / Development 1. 5 points.
The following list of requirements for the CheckPoint is colored GREEN for items that are focused, accurate, and covered in a substantive way. The items colored in ORANGE are not well focused on the call of the exercise, lacking in sufficient detail to demonstrate good comprehension of the concepts involved or otherwise are in need of improvement. Items colored in RED are missing altogether. Points Earned 1. 5/1. 5 Additional Comments Describe a business scenario (either real or fictional) in 200 to 300 words in length that depicts each of the following forms of business organization:Joint-stock company.
Limited liability company Partnership Sole proprietorship Student described a real or fictional business scenario for each of the following business organizations: Joint-stock company Limited liability company Partnership Sole proprietorship Student prepared a response consisting of 200-300 words for each business organization. Readability and Style .25 Points Points Earned .25 /. 25 Additional Comments Appropriate use of font sizes is present. Student’s content was concise and accurate. Student’s paragraphs are brief but descriptive.
Tone is appropriate to the content and assignment. Sentences are clear and concise. The tone is appropriate to the content and assignment. Sentences are clear and concise. Mechanics .25 points Points Earned .25/. 25 Sentence mechanics are good. Additional Comments Rules of grammar, usage, and punctuation are followed. Sentence mechanics are good. Student uses proper grammar, usage and punctuation. Student’s spelling is substantially correct. Spelling is correct. Total 2 Points Overall Comments: Excellent work on this CheckPoint!
Your work covered each requirement sufficient detail to demonstrate full comprehension of the concepts involved. You did very well to describe appropriate characteristics of each of the four business organizations. Your readability and tone are both generally very good. Keep up the excellent work in your future assignments! Now that you have completed this work, do you think that you could make a choice between these various business organizations as to which appeals to you the most if you were to have your own business? Total Points Earned 2. 0/2. 00.