Business Organizations

By: X'zabria Jones and Tramoski Franklin

Sole Propriertorship

Unincorporated business only run by a single person who has unlimited liability for all debts of the firm.


Example: Someone running a lemonade stand.

Partnership

Unincorporated business owned by two or more people who share profits and unlimited liability.


Example: two people of the same business selling candy for the same cause.

Corporation

Form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual.


Example: Harvey's or Wal-Mart

Definitions :

Board of Director: People who are elected by shareholders to run a corporation.


Dividend: check paid to stock holders usually quarterly representing portion of corporate profits.


Stock: Certificate of ownership in a corporation.


Unlimited Liability: Situation in which a business owner is responsible for all the businesses debts.


Limited Liability: Situation in which a shareholder is not responsible for a corporations debts.

Most Common Business ??

Answer: Corporation