3 Business organizations
Sole proprietorship
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm.
Real life example: freelance writer
Partnership
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for all debts and obligations of the firm
Real life example: Real estate
Corporation
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, sue and be sued
Real life example: 7- eleven
Definitions
Limited liability- is where a persons financial liability is limited to a fixed sum
Unlimited liability- requirement that an owner is personally and fully responsible for all loses and debts of a business
Stock- certificate of ownership in a corporation
Dividend- check paid to stockholders,usually quarterly, representing portion of a corporate profits
Board of directors- is a body of elected or appointed members who jointly oversee the activities of a company or organization.
Sole Proprietorship is the most common of the business types