Business Organizations
Types of Business
- Sole Proprietorship: Owner has unlimited liability, or full responsibility over the business.
- Partnership: Where responsibility is split between two or more people.
- Corporation: Has limited liability, which is having little to no responsibility.
Sole Proprietorship
Subway is a sole proprietorship because the only owner makes all decisions for the business and is fully responsible.
Partnership
Proctor and Gamble is a partnership because the decision making and responsibility is split between the two partners.
Corporation
People buy into corporations with stocks and have no control over the business and make no decisions.
Definitions
Organization Structure
Stock- Shares of ownership in a corporation
Dividend- A shareholder's share of a corporation's profits
Board of Directors- Body of elected members who oversee the activities of a company/organization