The Business World

Types of businesses.

Free Enterprise System

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