Forms of Business Organization

Forms of Business Organization

A good example of a Joint Stock Company would be a company that I have worked for in the past called Coachman. Coachman, a leading manufacturer of travel trailer and recreational vehicles also was a large producer of manufactured homes. Headed by a Chairman of the Executive Office, coachman relied largely on the investment of stock holders whom in turn were constantly at a great risk with their investment simply because the product they were investing in not only relied on the economy in general but the housing market as well.

A common title for today’s business owners is an LLC, a Limited Liability Company. Declaring one’s business as a Limited Liability Company is the preferred method of titling a business because it protects not only the owner, owners and stockholders from any unforeseen circumstances such as poor management or as we all have experienced an extremely unstable economy.

The Partnership is an investment of knowledge and buying power by two or more parties whom form an agreement as to how a company is to be run and how liabilities, expenses and profits will be divided. A Partnership is most popular among smaller businesses.

A number of years ago I decided to put my knowledge and experience to work by starting my own construction company. I felt my knowledge was not quite as high as I felt comfortable with so I brought aboard what I referred to as a silent partner. My silent partner had better knowledge about what we wanted to produce but did not have the capitol or credit to include in the ownership so I titled my business as a Sole Proprietor. (Jones, 2007)