Types of Business Organizations
Eryon Patrick ,Charles Miller
Sole Proprietorship
Has a single owner. This owner takes all the risks and receives all the profits.
Ex. A Barbershop
Partnership
Partnership divides risks and profits of a business among two or more people
Ex. Bros. Barbecue is an example of a partnership
this resturaunt was owned by Uncle Elroy and his brother Willie
Coorparation
A type of business in which investors own shares of stock and limited liability.
Ex. Walmart because its open to the public and you can buy stocks.
Other Terms and Notes
Limited Liability- liability is shared between multiple ownwers.
Unlimited Liability- the owner is personally responsible for all the business's debts.
Stock- what is issued by coorperations to investors .
Dividend- investors share of profits.
Board of Directors- hire a CEO to make day to day decision.
NOTE: the most common type is Sole Proprietorship