Business Organizations

Kamron Peterson & Ronald Christian

Sole Proprietorship

  • is the simplest business form under which one can operate a business.
  • Ex: Lemonade Stand

Partnership

  • is the relationship existing between two or more persons who join to carry on a trade or business.
  • Ex: Albany Mall

Corporation

  • a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.
  • Ex: Walmart, Jordan, Adidas, and Nike.

Limited Liability

is where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership.

Unlimited Liability

situation in which a business owner is responsible for all the business's.

Stock

shares of ownership in a corporation.

Dividend

a shareholder's share of corporations profit.

Board of Directors

people who are elected by shareholders to run a corporation.