1. Business Organizations

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

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

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

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

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

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

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