Week 6

• Business ownership


  • The legal control over a business
  • It gives the owner the legal right to make certain business decisions
• Types of business ownership

  • Sole proprietorship
  • Partnership
  • Corporation
  • Cooperative
• Sole proprietorship


  • A business owned and operated by one individual
  • The most simplest and most common form of ownership
  • The owner has full control
  • Profits and liabilities belong solely to the owner
• Partnership 


  • A business owned by two or more individuals who share profits, losses, and responsibilities
  • General and Limited
• General partnership


  All partners share responsibility and liability
• Limited partnership


  Partners only invest and are not involved in day to day operations
• Corporation


  • A legal entity owned by shareholders and guided by the board of directors
  • It is used shares of stock and lives on after the owners have sold their interest or passed away
  • C, S, B
• C Corporation 


  • A standard corporation subject to double taxation (profits and dividends taxed separately)
  • The founders generally are the major shareholders
• S Corporation


  A corporation with past through taxation to avoid double taxation
• B Corporation 


  Focuses on social or environmental impact alongside profit
• Cooperative (Co-Op)


  • A business owned and operated by its members for mutual benefit
  • Profits are shared among members