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.