Types of Business Organizations Sole Proprietorship, Partnership, Corporation etc... James was 27 years old and ready for a new challenge. After working for Microsoft for the past 3 years, he was starting to grow tired working as a software programmer. He also disliked the fact that after three quick promotions to junior management during his first two years, he was now stagnant in his current position for the past year. Furthermore, he felt that his yearly salary of $55 000 did not reflect his hard work and constant overtime that he had put in during his past three years. There was no doubt in his mind that Microsoft prospered due to his hard work. So after three years, he decided to quit his job and begin his own programming company. Yet this programming company was different then the others because this programming company would sell software that taught young infants between 6 months to 3 years on how to create internet web pages. The company was called Web Babies. May, 2010 Upon registering with the city of Toronto and paying the $75 registration fee, James began his company. To get his start up capital, he cashed in his $50 000 that his parents had saved for him and too out a loan for $100 000. The first year was very rough for James as it took him the first six months to create his first software package Babynet1.0. By the end of the first year, he had only sold a couple hundred products. June, 2012 After taking a course on advertising from the local community college, James had finally learned how to successfully launch a strong advertising and marketing campaign. Through many days without sleep, he also managed to improve his software. Web Babies launched Babynet2.0 with much fanfare and success. The companies sales skyrocketed to over 550 000 copies sold. James noticed that his income tax was exceptionally high and due to his limited knowledge about accounting, he was desperate to seek help on how to lower his taxes. Instead of paying down his debt, he decided to reinvest the money into the company. July, 2013 After a couple years of success, James had encountered his first dilemma. A large lawsuit was launched by a parent who claimed that his software caused damaged to her childs eyesight by encouraging her son to spend hours in front of the computer. The court awarded the woman $3 million dollars plus he ordered Web Babies to put warnings regarding potential eye damage on their boxes. James was devastated. He did not have $3 million to pay for the damages. The woman was ready to lay claim to the companys assets as well as to James house, car and personal savings. Luckily for James, two of his former co-workers from Microsoft were looking to leave their current jobs. Evelyn and Ireland decided to help James out. They would be willing to invest approximately $2 million each and in return, they would each receive 30% of the companys profits. As well, all three would be equal partners in terms of decisions. In addition, since Evelyn was an accountant. She would handle the bookkeeping and due to Irelands expertise on customer relations, she would handle sales.

December, 2015 The company was flourishing. They had just reached their one millionth-sale and now employed 150 employees. What a change from a company that had only 3 employees two years ago. With the flourishing sales and profits, Ireland introduced a new partner, Sam. Sam claimed that he was an expert on international trade. He hoped that he could help start and create a successful entry of Babynet3.0 into the United States. By investing $10 million, Sam was given the rights to 10% of the profits from James and equal partnership in decision making. Unknown to James, Ireland and Evelyn, Sam was a member of a Columbian drug cartel and had arranged the $10 million from the cartel to create a new means of shipping drugs from Canada to the U.S. March, 2016 The U.S. and Canadian authorities had discovered Sams criminal plot. The justice systems from both countries launched fines against Web Babies to the tune of $30 million. Sam had quickly fled the continent and had left the company on the hook. Unfortunately, the company had assets totaling $25 million. The government and the courts began to look at James, Ireland and Evelyns personal assets to recover the remainder. The end of Web Babies was in sight. Yet luckily James had a plan. They were going to incorporate the business to raise the money to pay off the fine. The company spent approximately $30 000 to incorporate itself and by selling off shares, they were able to raise $150 million. The ownership of the company was now: James 20% of the shares, Evelyn 20% of the shares, Ireland 20% of the shares and other investors with 40% of the shares. January, 2017 Web Babies was now a software giant. It had earnings of over $300 million and was paying 55 cents per share in dividends. James was still CEO and Evelyn and Ireland were members of the board that ran a company of over 700 employees. One of the members of the board made an inappropriate decision and the company had faced a lawsuit of $1 million. Due to the fact that the corporation faced the lawsuit, not James, Ireland or Evelyn, all three felt much more secure of their personal possessions. Still, the company was expanding with its ability to raise cash to finance new ventures. The software was now running Netbabies10.0 and the future looked bright.

Create a table identifying the changes to Web Babies in terms of the business organization and size. Reference the changes in the business organization and sizes to the dates provided. If a change occurs in the same period of time, state both by old type new type.

Date	Type of Business Organization	Size (Small, Medium or Big)
May, 2010
June, 2012
July, 2013
December, 2015
March, 2016
January, 2017