3 Types of Business Organization


Sole Proprietorship

sole proprietorship has a single owner, who takes all the risk and receives all the profits

EX: Bookkeeper

A sole proprietor has unlimited liability, so the owner is responsible for all the business debts


A partnership divides the risk profit of a business among two or more people

EX :roommate and when two friends start a business together and share with each other the profits and losses.

Limited liability is where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership


corporation is when a group of people authorized to act as a single entity and recognized as such in law

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.

ex: Sears

this is all so the most common.its limited liability

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