BUSINESS ORGANIZATIONSMiss Smith7th grade Civics*pgs. 460-464

SOLE PROPRIETORSHIPSA _____ ________ owned by one person

Pros Cons

• You’re your own ____

• You decide the business _____

• You take all the _______

• Must have or ______ $$ to get a building/office space/equipment

• Must have $$ to pay ________

• Responsible for _____

• Risk failure and ____

PARTNERSHIPA ________ in which two or more people share the ______________, costs, _______, and _______

CORPORATIONSA type of _________ that is recognized as a separate _____ entity from the people who ___ itA _________ organization (unlike _______________ and partnerships)

HOW CORPORATIONS FUNCTIONRaising MoneySelling _____ (or ______ of ownership)The people who ____ corporate stocks are ___________

_________ are stockholders’ share of the profits

HOW CORPORATIONS FUNCTIONRights to OperateCertain ____ must be followed to ___________ a businessIncorporation allows a company to sell ______

HOW CORPORATIONS FUNCTIONElected DirectorsCorporations must have ________ where stockholders can:Elect a board of _________Voice their ________ on how the company is ___________

The board of directors represents the _____________ when making _________ about the ________

HOW CORPORATIONS FUNCTIONChoosing __________This is done by the board of _______ Debt ResponsibilityIf it goes out of _________, to pay off _____, property will be ____

NONPROFIT ORGANIZATIONSOrganizations that provide _____ and ________ without seeking to earn a ______ for stockholdersEx: _________, research associations, educational _________