Three business organizations

Jose Lopez 11/30/15 5th period

Define

Sole Proprietorship- a type of business entity that is owned and run by one natural person and in which there is no legal distinction between the owner and the business.

Partnership-a business or firm owned and run by two or more partners.

Corporation-a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.

Real life example of business organizations.

Sole proprietorship- Landscaper,

partnership- McDonald's

Corporation- Coca-Cola

Define

Limited Liability-situation in which a shareholder is not responsible for a corporations debts.

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-certificate of ownership in a corporation; common or preferred stock.

dividend-check paid to stockholders, usually quarterly ,representing portion of corporate profits.

board of directors-is a body of elected or appointed members who jointly oversee the activities of a company or organization.

The most common types of business

Sole proprietorship