Types of Business and Ownership

sole proprietorship

a business owned by only one person

wholesaler

distributes goods

unlimited liability

full responsibility for your company's debts

retailer

purchases goods from a wholesaler and resells them to the consumer

stock

shares of ownership in your corporation

Services

tasks that people or machines perform

corporation

a business owned by many people but treated by law as one person

partnership

a business owned by two or more persons who share the risks and rewards

Producer

a business that gathers raw products in their natural state

Intermediary

business that moves goods from one business to another

Manufacturers

businesses that make finished products out of processed goods

Goods

can be physically weighed or measured

Processor

changes raw materials into more finished products

limited liability

if the company looses money then the stockholders lose only what they invested