Econ 3-1 Forms of Business Ownership

A business owned and operated by one person

• Sole Proprietorship

• Partnership

• Corporation

• Limited Partner

Most common form of business in the USA

• Sole Proprietorship

• Partnership

• Corporation

• General Partner

Stock of finished goods

• Sole Proprietorship

• Partnership

• Corporation

• Inventory

owner is personally responsible for all losses and debts of the business

• Limited Life

• Partnership

• Corporation

• Unlimited Liability

Two or more individuals agree to own and operate a business together

• Limited Life

• Partnership

• Corporation

• Unlimited Liability

Responsible for the everyday operation of the business

• Limited Life

• Partnership

• General Partner

• Unlimited Liability

a legal creation that acquires resources, owns assets, produces and sells products, incurs debts, extends credit, sues & is sued, and performs the functions of any other enterprise

• Limited Life

• Partnership

• Corporation

• Unlimited Liability

government document that gives permission to create a corporation

• Limited Life

• Partnership

• Corporation

• Charter

The business lives even if the owner dies

• Unlimited Life

• Partnership

• Corporation

• Charter

This form of business ownership must keep detailed sales and expense records

• Sole Proprietorship

• Partnership

• Corporation

• Charter