Types of Business Organizations

By Jarques A. Wheeler, Jr

3 business organizations

1. Sole proprietorship is a type of business that a single owner, who takes all the risks and receives all the profits. 2. Partnership is a type of business in which risks and profits of a business are divided among two or more people. 3. Corporation is a type of business in which investors own shares of stock and have limited liability.

Real life examples of the three business organizations

A real life example of Sole proprietorship is

Definitions

Limited liability is a situation in which a shareholder is not responsible for a corporation's debts. Unlimited liability is a situation in which a business owner is responsible for all the business's debts. Stocks are the shares of ownership in a corporation. Dividend is a shareholder's share of a corporation's profits. Board of directors is a group of people who are elected by shareholders to run a corporation.

The most common type of business

Sole proprietorship