Dre Newberry & Travisse Lovett
3 types of business oganizations
- A Sole Proprietorship is a business owned by only one person. It is easy to set up and is the least costly among all forms of ownership.
- (EX: The owner faces unlimited liability, meaning the creditors of the business may go after the personal assets of the owner if the business can not pay them.)
- A Partnership is a business owned by two or more people who contribute resources into the entity. The partners divide the profits of the business among themselves.
- (EX: In general partnership, all partners have unlimited liability. In limited partnerships, creditors can not go after the personal assets of limited partners.
- A corporation is a business organization that has a separate legal personality from its owners. Ownership in a stock corporation is represented by shares of stock.
- (EX: The board of directors an elected group from the stockholders, controls the activities of corporation.
- The most common is sole proprietorship.