Business Organizations

Economics 5th Period

Destiny Walker & Wyitifiah Clyde

Definitions

1.) Limited Liability- 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.


2.) Unlimited liability- The legal obligations general partners and sole proprietors because they are liable for all business debts if the business can't pay its liabilities.

3.) Board of directors- A body of elected or appointed members who jointly oversee the activities of a company or organization.


4.)Stock- The capital raised by a business or corporation through the issue and subscription of shares.

5.) Dividend- A sum of money paid regularly by a company to its shareholders out of its profits.