Business Organizations

Sole properietorship

  • Has One Owner
  • Person who owns the business and is personally responsible for its debts.
  • Jeff Parker - Owner Of Trinity Barbershop
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Partnership

  • Has 2 or more owners
  • Each person contributes money, property, labor or skill
  • Expects to share in the profits and losses of the business.
  • Raheem Shara & Gilbert - Owner Of Araamda Inn & Sandtrap

Corporation

  • The type of business in which investors own shares of stock and have limited liability.

  • Nike

Definitions

*Limited Liability- situation in which a share holder is not responsible for a corporation's debts

*Unlimited Liability- Situation in which a business owner is responsible for all the business's debts

*Stock- shares of ownership in a corporation

*Dividend- a shareholder's share of a corporation's profits

*Board of Directors-.people who are elected by shareholders to run a corporation


Which type of business is the most common?

Sole Proprietorship is the most common