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Defining Three Types Of Business Organization
Partnership - operation between two or more individuals who share managements.
Corporation - Where you don't have to do nothing but buy stock.
Real Life Examples
Partnership - a real estate office employing 20 agents may be owned by a general partnership consisting of five of those agents.
Corporation - Buying stock from a business that is already owned and operated.
Unlimited liability - refers to the legal obligations general partners and sole proprietors because they are liable for all business debts if the business can't pay its liabilities.
Stock - A holder of stock (a shareholder) has a claim to a part of the corporation's assets and earnings.
Dividends - a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).
Board of directors