Business Organizations

By:Darrell Bryant

Sole Proprietorship

Has a single ownership who takes all the risks and receives all the profits.

Leon Levine, a 21-year-old entrepreneur, owns the retail store Family Dollar.

Partnership

Divides the risks and profits of a business among two or more people.

David Edgerton and James McLamore, purchased the company and renamed it Burger King.

Corporation

Issues shares of stock to investors.

Best Buy shares of stock to investors.

Limited Liabilty

It means that he or she is not personally responsible for business debts and obligations of the corporation. This situation is called corporations.

Unlimited Liability

The owner is personally responsible for all the business's debts. This situation is called sole proprietorship.

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 shareholder's to run a corporation.