Business Organizations

By Jordan L. Williams

Business Definitions

  1. Sole proprietorship- Owning a business and being held responsible for all its functions. (Ex. Chick-fil-A)
  2. Partnership- When you split the liability with another person or group. (Ex. Target)
  3. Corporation- A group of people who work together as one with very limited liability. (Ex. Cadillac)

Definitions (cont'd)

  1. Limited Liability- Liability is not mainly your responsibility.
  2. Unlimited Liability- You are responsible for every function of the business.
  3. Stock- Signifies ownership in a corporation and represents a claim on part of the corporation's earnings.
  4. Dividend- Distribution of a company's earnings to a class of its shareholders.
  5. Board of Directors- The head lead of the business who makes all decisions for a company.

Sole proprietorship is the common businesses .