BUSN 70 Lecture Notes - Lecture 7: Limited Liability Company, Whatsapp, Startup Company
13 Mar 2021
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Document Summary
Employee owned companies have proven to be successful on many fronts whether the company is large or small. Employes have a great amount of say in company. Employees who have ownership tend to have a higher sense of loyalty to the company because there is a mutual interest between the two. There are two types of employee ownership structures: The equity benefit plan offers the employee a stake in the company without voting rights. The employee-controlled structure may have less equity benefits, but all are considered owners and may have varying degrees of voting rights. Control and corporate income is shared and divided up among employee owners in this context. A special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do. First to receive payments if company has to be liquidated. Cannot be exchanged/sold but can be inherited.
