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