Forms Of Business Organization Flashcards
What are sole proprietorship, partnership, and corporation
Forms of Business Organization
The business consists of one owner
Sole proprietorship
The owner is the manager
Sole proprietorship
Simplest form of business
Sole proprietorship
The business has no legal personality
Sole proprietorship
Business owned by two or more owners called partners
Partnership
Sharing of loss and profit arrangements
Partnership
Most complex form of business
Corporation
Owned by many owners called stockholders or shareholders
Corporation
Its ownership is divided into common stocks or shares
Corporation
The most of contributions given or will be given to the corporation in exchange for its common stocks
Paid-in capital
Reflects the par value of the issued common shares
Capital stock
Excess of the issue price over the par
Additional Paid-in Capital
Reports the undistributed earnings of the corporation
Retained earnings
