Forms of Enterprise Q There are three major forms of enterprise: Sole-proprietorship D Partnership D Corporations Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
6 Forms of Enterprise ⧫There are three major forms of enterprise: Sole-proprietorship Partnership Corporations
Sole proprietorships Q Single person owns the business Q Not separate from its owner in terms of responsibility and liability The business is the owner and the owner is the business Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 7
7 Sole proprietorships ⧫Single person owns the business ⧫Not separate from its owner in terms of responsibility and liability ⧫The business is the owner and the owner is the business
Partnership Q Owned by two or more people 9 Similar to a sole proprietorship Q Not separate from the owners in terms of responsibility and lia bility Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
8 Partnership ⧫Owned by two or more people ⧫Similar to a sole proprietorship ⧫Not separate from the owners in terms of responsibility and liability
Corporations Q Legally separate and financially separate from the owners Q Ownership in a corporation is divided into units called shares of capital stock Q Owners are called shareholders or stockholders Q Corporations are separate legal entities Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
9 Corporations ⧫Legally separate and financially separate from the owners ⧫Ownership in a corporation is divided into units called shares of capital stock ⧫Owners are called shareholders or stockholders ⧫Corporations are separate legal entities
Characteristics of Enterprise Characteristics Proprietorship partnership Corporation Business entity yes yes Legal entity ves Limited liability no no no no yes Business taxed no One owner allowed yes Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 10
10 Characteristics of Enterprise Characteristics Proprietorship Partnership Corporation Business entity yes yes yes Legal entity no no yes Limited liability no no yes Unlimited life no no yes Business taxed no no yes One owner allowed yes no yes