Business Organizations
Discover what happens in a business organization
The terms below are words that you will have to be familiar with in order to understand the three types of businesses
Limited Liability
Limited Liability is a situation in which a shareholder is not responsible for a corporation's debt.
Unlimited Liability
Situation in which a business owner is responsible for all of the business' debts.
Stock
Shares of ownership in a corporation.
Dividend
A shareholders' share of a corporation's profits.
Board Of Directors
People who are elected by shareholders to run a corporation.
The Three Types of Businesses
Sole Proprietorships
One person owning and operating a business.
This is the most common type of business.
A real life example of sole proprietorship is Kim Kimble, who owns and operates her own business.
Kim Kimble has unlimited liability. She is totally responsible for her business' debts.
Partnerships
Legal businesses with two or more partners.
A real life example of a partnership is the founders of "GOOGLE" ,Larry Page and Sergey Brin.
Corporations
- Legal entity with authority to have liability separate from owners.
- Anyone could be apart of a corporation just by simply purchasing a stock or dividend. When you are apart of a corporation you have limited liability; which means if a corporation goes into debt you will not be responsible.
- An example of a Corporation is the Bank of America.
Below is a picture of Bank Of America's stock sales between 2010 and 2011.
This flier was created by: Mikayla Simmons and A'shantia Mitchell