4 Types of Business Ownership
By: Trent Overton
A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one natural person and in which there is no legal distinction between the owner and the business.
a tutor is an example of a sole proprietorship
- A legal form of business operation between two or more individuals who share management and profits. The federal government recognizes several types of partnerships. The two most common are general and limited partnerships.
a business or firm owned and run by two or more partners
Warner Brothers, Ben and Jerry's are 2 examples of a Partnership
Limited Liability Partnership
A business organization that allows limited partners to enjoy limited personal liability while general partners have unlimited personal liability.
is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities
one partner is not responsible or liable for another partner's misconduct or negligence
individual partners are not obligated to consult with other participants in certain business agreements
A form of business operation that declares the business as a separate, legal entity guided by a group of officers known as the board of directors .
a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law
legal entity guided by a group of officers known as the board of directors
corporation's shareholders are not liable for any debts incurred or judgments handed down against the corporation
Best Buy or 7-Eleven are both examples of corporations