Business and Market Structures

The three different types of businesses organizations

Sole Proprietorship

This means that you are the only one in charge, only one who has unlimited responsibility. You are the only owner of the business. The hardest to start. This makes up about 70% of the nations businesses.

Partnership

A partnership is between you and another person or business. You have shared responsibility, divided risks and profits, and being in a partnership can help you pull all you resources and you can help each other if you are specialized in something else. The easiest to start.

Coroperation

Being in a corporation is like owning stock. You own part of the business but not a lot. If you are in a corporation you are know as a shareholder. you buy stocks in a company from the board of directors. You have very limited responsibility.

Vocabulary

  • Limited liability- is when you don't take or have much responsibility, when you don't make many decisions in the business.
  • unlimited responsibility- when everything falls on you, you make all the decisions in the business.
  • stock- when you wanna be part of a corporation you may buy part
  • dividend- is what the board of directors divide a corporation into socks
  • board of directors- the people who divide corporation into stocks