Profit and Supply and Demand

In: Business and Management

Submitted By juicyj888
Words 462
Pages 2
John Wick
BUS/211
Profit and Supply and Demand
16 July, 14

Consider a local business whose services you frequently use. What are the main components of this company’s business model? One of the local businesses that I often frequent is Giant Eagle. Giant Eagle has a complex business system that would require a lot of management working together to ensure that the operation works successfully. Giant Eagle is a joint-stock company. In the recent years, they’ve even expanded into the Gasoline and convenience markets. In order to expand how Giant Eagle has expanded they had to become a joint-stock company. A joint-stock company is a company that allows investors to buy shares in their business, allowing them to rapidly grow. If the initial investment turns out to be profitable, the company may offer more stock to the public in order to expand even further. A successful joint-stock company comes with a lot of liabilities that aren’t often found within other business models, such as a Limited Liability Corporation. A Limited Liability Corporation offers protections to its investors. In an LLC, the individual is only liable for what they have invested. If an LLC is to face a lawsuit from an unhappy customer, the partners and investors are protected because the plaintiffs are suing the company instead of its investors. Another business model is the simple partnership. A partnership is whenever two or more individuals decide to create and cooperate in conceiving a business. Partnerships often come to fruition when multiple individuals form an alliance with the belief that they will mutually benefit from their professional relationship. Partnerships are often started whenever individuals have different sets of skills that can be combined to produce a product or provide a service that is superior to their competition. The final business model is…...

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