BUSINESS STRUCTURE

GEORGE BEAL/ Cedric Williams

sole proprietorship

The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.EXAMPLE:

Landscaper

Corporation

A corporation is a type of business in which investors own shares of stock and have limited liability. example:walmart

Definitions

limited liability- situation in which a shareholder is not responsible for a corporation's debt

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

Stock- Shares of ownership in a corporation.

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

Board of Directors- people who are elected by shareholders to run a corporation.