1. Types of Businesses Unit 6 Day 6

2. Sole Proprietorship Business owned & operated by a single person Most common form of business in the US today Has unlimited liability - owner is responsible for all, if any, mistakes that happen in the company

3. Partnership A business owned by 2 or more ppl Least amount of any other form of business Usually raises more $ b/c more ppl are involved Also have unlimited liability

4. Corporation Business recognized by law that has many of the rights & responsibilities of an individual 2 nd largest form of business in the US Must get a charter from the govt giving permission to organize Charter will also issue how much stock can be placed into the corporation

5. Have limited liability — corporation, not the stockholders, are responsible for debts & mistakes More govt regulations apply to corporations Stock—ownership or shares of the company ppl can buy Stockholders—those who own shares in companies

6. Franchise License to market a company’s goods & services Offshoot of a corporation Corporate franchisers enable a person to market a well-known product or service in return for an initial fee & percentage of earnings

7. Who stops large corporation from taking over? Small Business Administration (SBA)—run by US Congress Gives assistance & aid to protect the interests of small businesses Makes loans to businesses & acts as a guarantor on bank loans