Forms of Business
By:Corey Dixon and Allon Ingram
Sole Proprietorship
- has a single owner , who takes all the risks and receives all the profits.
- Ex. Deciding to mow lawns
- Has unlimited liability : the owner personally and fully responsible for all loses and debts of the business.
Partnership
General Partnership
- All partners are responsible for the management and financial obligations of the business
- Has unlimited liability feature of a sole proprietorship
Limited Partnership
At least one partner is not active in the daily running of the business , although he or she may have contributed funds to finance the operation.
- Has limited liability :investors responsibility for the debts of the business is limited by the size of his or her investment in the firm
Examples
A law firm is an example of both Limited and General partnership.
Corporation
- A form of business organization recognized by law as a separate legal entity having all the rights of an individual .
- Most common form of business
- Has stocks that people can buy:Stocks are ownership certificates in the firm
- when it's profitable it has a dividend which is a check representing a portion of the corporate earnings to each stock holder.
- Board of Directors are a group of selected members to make decisions to keep the corporation running.
- an example would be Walmart