Business Organization

Business Organization

I would like to present four different scenarios of a landscaping industry that would typically start off with one man but eventually grow to an inspiring business for all small business owners. Let’s say this landscaping business was large enough to be a Joint-Stock Company where its starter/manager shares its investments and stocks with other people who are willing to risk their money at this business’s success. Holding 30% of the shares, the manager is expected to manage the business successfully but could be the very reason why it runs to the ground. Now, all the share holders are liable for their assets to be seized to pay off the debt of this fallen business.

If the business is large enough for share holders then the landscaping business should be a Limited Liability Company. This hold all the same risks as the Joint-Stock with the exception of the investors being liable for the failure of the company. So now if the company fails because of poor management then the investors are only out their initial investment. This was created because too much corruption and fraud was found in Joint-Stock, now invest with smaller risks.

This business could start as a Partnership because an experience construction worker and an experienced landscaper could but their assets at risk and split the stock between each other. This way, only they will benefit from its revenues but are also liable for its problems.

I think that this business would best be started as a Sole-Proprietorship because now this landscaping professional doesn’t have to deal with disputes with other partners/investors. This Pro is liable solely for its shortcomings but also gets to collect all the revenue it may bring in. This is ideal but difficult to do because small businesses are fighting a 4 year statistical failure rate.