Business Organization Checkpoint
Lisset Navarro
BUS/210
05/18/2012
Judd Shaffer

The most common forms of business organizations are: * Joint-stock company (JSC), which refers to a type of corporation or partnership that involves two or more individuals who own shares of stock in a company. In a JSC, shareholders are free to transfer their ownership interest at any time by selling their shareholding to others. Moreover, in a JSC company, the stockholders have unlimited liability, meaning that their capital and wealth can be seized to pay its debts. Microsoft Inc. is an example of a public joint-stock company. Microsoft Inc. was founded by Bill Gates and Paul Allen in 1975. Shareholders are able to buy and/or sell shares as they desired. In addition, shareholders elect the board of directors, in charged to hire the top executives such as the president, vice president, secretary, and treasurer. * Limited liability Company (LLC), which refers to the legal form of Business Company that provides limited liability to its members (owners). Such is the case of Viscot Medical LLC, a private veteran-owned small business that manufactures a broad line of medical disposable products. Viscot Medical like the majority of LLCs, is taxed almost the same way that partnerships or sole proprietorships. The losses as well as the profits are passed through to the members of the company and there is no double taxation, members pay income taxes at their individual tax rates. Furthermore, if Viscot Medical LLC takes out a business loan that later will not be able to repay, the creditor cannot sue the individual members to pay the loan. * Partnership, which refers to the business entity in which all partners (owners) invest capital and share with each other the profits or losses of the business. For example, a person who is very good at making cakes may team up with one who