Objective 7: Business Structure
There are three basic ways that businesses organize to earn profits.
What are the basic types of profit-seeking business structures?
Types of profit-seeking business structures
- Proprietorship: A form of business organization with one owner who takes all the risks and all the profits.
- Partnership: A form of business organization with two or more owners who share the risks and the profits.
- Corporation: A form of business organization that is authorized by law to act as a legal entity regardless of the number of owners.
In a corporation, owners share in the profit, and their liability is limited to the amount of their investment.
Match the type of business structure with the correct description: