Economics

Asia Covin & Nasjae Bell

Sole Proprietorship

  • Sole proprietorship simply refers to a person who owns the business and is personally responsible for its debts.

  • Easiest to start.

Partnership

  • A partnership is a business or firm owned and run by two or more partners.
  • Has the benefits of specializations.

Corporation

  • A corporation is a company or group of people (board of directors) authorized to act as a single entity and recognized as such in law.
  • Easiest to raise financial capital (money).

Definitions

  • Liability- Someone whose presence or behavior is likely to cause embarrassment or put one at a disadvantage .
  • Unlimited Liability- refers to the legal obligations general partners and sole proprietors because they are liable for all business debts if the business can't pay its liabilities.


  • Stock- The capital raised by a business or corporation through the issue and subscript of shares.


  • Dividend- a sum of money paid regularly by a company to its shareholders out of its profits.


  • Board Of Directors- a body of elected or appointed members who jointly oversee the activities of a company or organization.

Which Type Of Business Is Most Common ?

The type of business that is most common is a Sole Proprietorship. It is easy to form and offers complete control to the owner.