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