Required Resources

Read/review the following resources for this activity:

• Textbook: Chapter 4
• Lesson
• Minimum of 1 scholarly source

Initial Post Instructions

Consider a for-profit organization in your area that you currently work for (or a company your organization competes with or one you would like to work for). What type of ownership model does the company/organization use? Why do you think this type of ownership model was chosen? What would be different in your organization if a different ownership model were used?

Follow-Up Post Instructions

Respond to at least one peer. Further the dialogue by providing more information and clarification.

Writing Requirements

• Minimum of 2 posts (1 initial & 1 follow-up)
• APA format for in-text citations and list of references

SOLUTION

There are various forms of business ownership structures, which include, sole proprietorship, partnership, corporations, Limited Liability Businesses, franchising and many more (Kongmanila & Kimbara, 2007). I work in a hospital, which is a typical corporation, overseen by a board of directors. It is an enterprise that is a separate entity from the owners, who are regarded as shareholders. They are responsible for electing a board of directors who oversee the formulation and implementation of the corporation’s policy and vision. The board appoints the corporate staff who run the daily operations of the hospital.

This type of ownership model was probably chosen due to its ability to foster limited liability to its shareholders. In case of debts, losses, contractual obligations, or cases of negligence at the hospital the owners are not personally liable, and therefore cannot be held accountable. In addition, I think this model was deemed appropriate as it can retain a perpetual existence, meaning it stands as a sole entity lawfully. Please click the purchase button to access the entire copy at $5