Business Organizations
By: Fantasia Duncan & Deiondra Garner
Sole Proprietorship
The type of business that has a single owner, who takes all the risks and receives all the profits.
Example: Brighter Beginners owned by Patricia Thomas
Partnership
The type of business in which risks and profits of a business are divided among two or more people.
Example: Larry Page and Sergey Brin created google search engine.
Corporation
The type of business in which investors own shares of stock and have limited liability.
Example: Nike
Definitions
*Limited Liability- situation in which a share holder is not responsible for a corporation's debts
*Unlimited Liability- Situation in which a business owner is responsible for all the business's debts
*Stock- shares of ownership in a corporation
*Dividend- a shareholder's share of a corporation's profits
*Board of Directors-.people who are elected by shareholders to run a corporation
Which type of business is the most common?
Sole Proprietorship is the most common.