Business Organization Essay

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Business Organization BUS/210 01/30/2014 Business Organization Waters Plumbing a sole proprietorship which is a non-incorporated business entirely owned by Bill Waters. The business is Bill’s livelihood, he takes all risks. The business has no existence apart from the Bill, and the liabilities are Bill’s personal liabilities. As Waters Plumbing thrives and Bill hires more employees and decides to expand he decides it is time to take on a partner. Bill and Frank a longtime friend pool the risks and Waters Plumbing becomes a partnership and each founding partner agrees upon a percentage of stock based on how much each person initially puts into to the company. The business continues to prosper and profits are divided according to the percentage of stock they hold in the company. Waters plumbing is thriving and expands across state lines and the partners Bill and Frank decide to protect their personal property by creating a Limited Liability Company. Making the change to Waters Plumbing LLC allows the company to continue to grow and take on more investors in the company. The business keeps gaining widespread attention as the top plumbing business in the west. Bill Waters the entrepreneur of Waters Plumbing decides along with his partners and investors to raise capital by selling shares of stock to investors that guarantees them a certain percentage of the company’s profits. By doing this Waters Plumbing is now a joint-stock company with many stockholders and increased capital. As Waters Plumbing grew as a business it was also changed the form of its business organization. Bill Waters went from having all liabilities on his shoulders to having a strong, well invested company with strong capital. References Jones, G. R. (2007). Introduction to business: How companies create value for people. New York, NY:

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