Business Organzations

By: Jamyia Prothro & Derrick Odom

3 Types Of Business Organzations

A Sole Proprietorship has a single owner, who takes all the risks and receives all the profits.

A Partnership divides the risks and profits of a business among two or more people.

A Corporation issues stock to investors.

Definitions

Limited Liability - Situation in which a shareholder is not responsible for a corporation's debts.

Unlimited Liability-Situation in which a business owner is responsible for all the business's debts.

Stock- Shares of ownership in a corporation.

Dividend- A shareholder's share of a corporation's profits.

Board of Directors- People who are elected by shareholders to run a corporations.

Sole Proprietorship is the most common business !