Mind Your Business
Jasmine Ellis
Types of Businesses
- A sole proprietorship has a single owner, who takes all the risks and receives all the profits.
- A partnership divides the risk and profits of a business among two or more people.
- A corporation issues shares of a stock to investors.
Limited Liability
- If a corporation fails, all a share holders will lose is the value of his or her stock.
- EX. Living with roommates
Unlimited Liability
- The owner is personally and fully responsible for all losses and debts of the business.
- EX. Living alone
Stock
- Shares of ownership in a corporation.
- EX. betting on the company
Dividend
- A shareholders share of a corporations profits.
- EX. getting a paycheck
Board of Directors
- People who are elected by shareholders to run a company.
- EX. voting for president
Most Common?
Sole Proprietorship