WEEK 3 Flashcards
4 Forms of Business Organization
- Sole Proprietorship
- Partnership
- Corporation
- Cooperative
an enterprise that is owned and managed by one person.
- Sole Proprietorship
Two or more persons bind themselves together to contribute money, property, or industry to a common fund with the
the intention of dividing the profits among themselves.
Partnership
2 Classifications of Partner
- General Partner.
- Limited Partner.
One whose liability extends to his separate property
- General Partner.
One whose liability is limited to his capital
- Limited Partner.
A business owned by its shareholders. It is an artificial being created by operation of law, having the right of succession and the powers, attributes, and property expressly authorized by law or incident to its existence.
Corporation
Types of Corporate Securities
I. Stocks
II. Bonds
certificate of ownership
I. Stocks
2 Kind of Stockholder Shares
a. Preferred Shares.
b. Common Shares.
A kind of share that is sold to all people, who do not have direct control in the management of the business.
a. Preferred Shares.
A kind of share that represents the ownership of a stockholder.
b. Common Shares.
2 Types of Stockholders
a. Preferred Stockholder.
b. Common Stockholder.
They have the first claim against the earnings and assets of the
corporation.
Preferred Stockholder.
They have the claims against earnings and assets of the
corporation next to those of the preferred stockholders.
Common Stockholder.
