The Business World
Types of businesses.
Free Enterprise System
- Characteristics of the free enterprise system include:
- The right to competition
- The right to own private property
- Free Trade
- No government intervention
- http://www.investopedia.com/terms/f/free_enterprise.asp
The Promise of Free Enterprise
Sole Proprietorship
- A business in which one individual is solely responsible for all of liability in the company.
- Makes up 70% of all businesses in the U.S
- Very easy to get started and is less complicated to file during tax season
- This type of business is commonly found in miscellaneous jobs such as plumbing, yard workers, etc.
Episode 81: Introduction to Company Formation: How a Sole Proprietorship Works
Partnership
- A business in which 2 or more individuals bear all the losses and gains of the company.
- Makes up 10% of all businesses in the U.S
- Does not have stock for people to invest in
- Is commonly found in Real estate, vets, lawyers, etc.
What is a Partnership?
Corporations
- Owned by stock holders who have a say in what happens in a company and is usually run by a board of directors
- Makes up 20% of all businesses in the U.S
- Must have a charter in order to operate
- Complicated to start up at first
- Ex: Sony, Microsoft, Apple, Verizon, Nike
Corporations and Limited Liability