A Brief Note On Business Organization

Submitted By minhack

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Pages: 2

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Business Organization
Mindi Hackenberg
BUS/210C
September 5, 2013
Carrisa Baptiste

Business Organization
In a small town named Mechanicsburg, Pennsylvania a man by the name of Crasher took his love for cheerleading and decided to open an all-star cheerleading gym. He wanted the name of his gym to be Cheer Tyme. Before doing following through with his passion he had lots of business planning and forms of business organizations to think of!
To start he needed to find some interested investors and show them his business plan. To pull these investors in he had to convince them how this was going to be a good investment for them. To get the joint-stock company to work in their favor, Crasher said he would keep 40% of the stock for organizing and managing this business while the investors would split the other 60%. The way they get their stock is from the gym members enrollment fees, and monthly tuitions. Crasher is also going to hold private lessons, camps, birthday parties and choreography sessions to non-gym members at a higher fee.
Before the investors agreed to take any part in this they had to be guaranteed that this company was a limited liability company. This limited liability protects the investors from losing their own personal wealth if they gym falls through and goes bankrupt. The banks and creditors can only go after what the investors initially invested.
Crasher wanted to start this sole proprietorship in hopes that one day his

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