Week Checkpoint

The employees could choose to personally manage where they wanted to invest their money, but all employees held stock in the company. After an employee was employed with the company for a period of 2 years they could roll over the money the company had invested for them; along with any they themselves had invested, if the employee changed Jobs. This company could again be used in the limited-liability example. If the company had gone bankrupt any personal money the employees had would not be at stake for reimbursement to creditors.

Only the money the company’s employees had invested would be at stake. A law firm is a good example of a partnership. Most law firms are partnerships because they consist of two or more licensed attorneys who have put together money o form a business and agree to work together for the sake of make the business profitable. I could use the daycare I used to run when my children were babies as an example of a sole-proprietorship business.

I ran the business from my home and was registered with the state to provide subsidized daycare to eligible families. As a sole-proprietor the of the business fell on me and the profits were mine alone. I was responsible for all my personal bookkeeping, as well as providing my customers with weekly statements for their bookkeeping and tax purposes. I had my own NINE number and was responsible for filing and paying my taxes.

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