The Three Main Types
of Business Organizations
Three types of Organizations
[Example: Home Healthcare]
Partnership- a relationship existing between two or more people who join together to carry on a trade or business; each person contributes money labor skills and property and share their profits
[Example: Apple Inc.]
Corporation- an independent business owned by shareholders however , when the business goes into debt the shareholders are not in debt but the corporation is.
*Unlimited liability- an investment where the investor or partner can lose an unlimited amounts of money because they are responsible for all the debts, bills ,etc.
*stock- a share of a company held by an individual or group: used by corporations to raise capital.
*dividend- a taxable payment decided by a company's board of directors and given to their share holders out of the company's current or retained earnings, usually quarterly.
*Board of directors- also known as directorate. Individuals elected by a corporation's shareholder to oversee the management of the corporation.