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


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


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


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