This document discusses different types of business organizations in the United States. It notes that most businesses are sole proprietorships, which are privately owned and make up nearly three-quarters of US businesses, generating about 20% of total sales. Partnerships allow for shared opportunities and liabilities but can introduce complex relationship dynamics. Corporations have public ownership through shares of stock, a hierarchical structure, and limited liability for owners, making them effective for raising large sums of capital. Corporations also generate nearly three-quarters of all US sales.

2.  Remember – in America, businesses
are privatelyprivately owned, even those that
are corporately owned. I.e. NOT owned
by the government [the State]

3. Types of Business organizationTypes of Business organization
 Sole proprietorshipsSole proprietorships::
 UnlimitedUnlimited
possibilitiespossibilities
 Unlimited liabilityUnlimited liability 
 Nearly ¾ of U.S.Nearly ¾ of U.S.
businessesbusinesses
 About 20% of salesAbout 20% of sales
 Why?Why?
 The engine of U.S.The engine of U.S.
economy and jobseconomy and jobs
creationcreation
 Small Bus. Admin.Small Bus. Admin.

6.  Partnerships:Partnerships:
 Shared opportunitiesShared opportunities
and liabilitiesand liabilities
 Combined expertiseCombined expertise
 Greater fund-raisingGreater fund-raising
abilityability
 Complex structuresComplex structures
and relationshipsand relationships
 General vs. LimitedGeneral vs. Limited
PartnersPartners
 DangerDanger::
Friends/family relationsFriends/family relations
Trust factorTrust factor

7.  Corporations:
Corporate, public ownership;
Organization much like an
individual under the law
Complex, hierarchical structure
Part ownerships sold in shares of
the company or stock
Control is a function of # of
shares owned
Most effective at raising large
sums for startup or expansion
Limited liability for owners
Dividends are part of the profits
Stock gains value as sales and
perception of value increase, but
the opposite is also true…
Generate tremendous wealth –
nearly ¾ of all sales in U.S.