The Three Types of Businesses

By Te'Varus Blutcher

Sole Proprietorships

A Sole Proprietorship is a business that is managed by one person. It is the most common form of business, and the sole proprietor, or one person who runs the business, has to pay the bills to maintain the store's standard, buy supplies, and sell enough of its services by themselves. The pros of this type of business organization is that you have complete privacy, decorative control, and the options for rules and customs. However, there are cons as well. The cons are that you get little financial support, you have unlimited liability(which means all the responsibility of the store, and the things that come with it, fall on you), and you can easily get lonely and overwhelmed. An example of a sole proprietorship is a little corner store small enough to be ran by one person.

Partnerships

A partnership is a business managed and maintained by two or more people. This type of business divides responsibility between the participating party. This is known as limited liability(A situation where only a portion of the responsibility of a business organization falls on you). A few pros of this method of business is having limited responsibility, financial support, having company, etc. On the flip side of the coin, there are some cons. These include but aren't limited to: Shared space, Limited decorative control, disagreements, and different customs. An example of a partnership is a business ran by two people.

Corporations

A corporation is a method that enables people to completely avoid unlimited liability. In a corporation, investors buy a piece of a business with stocks, or shares of a business. These stocks allow them to either flourish, or dwindle with the business. This also allows them to elect a board of directors, which is a group that runs the company. Their fate is determined by the success of the company. If they flourish, the investors get a dividend, or share of the profit