Final Answer:
Sole Proprietorship:
- Number of owners: 1
- Who provides the money?: The owner
- Who makes the important decisions?: The owner
- Who gets the profit?: The owner
- What type of liability?: Unlimited liability
- Who is responsible for losses of money?: The owner
- Give an example: A local bakery owned by one person
Partnership:
- Number of owners: 2 or more
- Who provides the money?: The partners
- Who makes the important decisions?: The partners (together)
- Who gets the profit?: The partners (shared)
- What type of liability?: Unlimited liability
- Who is responsible for losses of money?: The partners (shared)
- Give an example: A law firm with two lawyers as partners
Corporation:
- Number of owners: Many (shareholders)
- Who provides the money?: Shareholders and investors
- Who makes the important decisions?: Board of directors and executives
- Who gets the profit?: Shareholders (as dividends)
- What type of liability?: Limited liability
- Who is responsible for losses of money?: The corporation (not personal)
- Give an example: Apple Inc. or Coca-Cola Company
──────────────────────────────────────
Parent Tip: Review the logic above to help your child master the concept of business organization worksheet.
