Business Organizations

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Presentation transcript:

Business Organizations

Sole Proprietorship Small business owned by one person Advantage- be your own boss Disadvantage- borrow money for business expense Examples?

Partnership Small business with two or more people share responsibilities More people in control and run business Examples?

Corporation Large businesses Important to the economy Permanent- still exist after the owner dies Examples?

How Corporations Function Raising money Sell stock- shares of ownership Stockholders- people who own corporate stock Dividends- corporate profits paid to stockholders

How Corporations Function Right to operate Must get approval from state to operate Elected directors- stockholders elect directors of the corporation

How Corporations Function Choosing executives- board of directors choose officers Debt responsibility- if business fails everything sold, stockholders and executives do not pay debt

Nonprofit Organizations Do not earn profit for stockholders Make enough money to sustain business ex. Charities, research associations, educational programs

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