Types of Business Organization. Sole Proprietorship Partnerships (Limited/Gen) Corporations Non-profits . Sole Proprietorship- 72% of businesses. Economic Weakness of sole proprietorship : Unlimited Liability : you have total responsibility for all debts and liabilities of the company
Advantages of sole proprietorships
Two major types of partnerships:
Articles of Partnership: contract between partners spelling out the rules of partnership.
Admitting new partners
Buying out partners
Disadvantages of Partnerships
Advantages of Partnerships:
Reasons to own stock:
Dividends: share of corporate profits paid to stockholders
Speculation: buy in hope that price of stock will increase.
Non voting shares of ownership
Liquidation benefit: If corporation goes out of business they are ahead of common stockholders in getting back money.
Elected by common stockholders
Advantages of a corporation:
Chamber of Commerce-promote economic growth of the community
Better Business Bureau- cops for businesses