Module 1
Learn about different types of businesses and how they operate.
Welcome to our lesson! Today, we're going to learn about different types of businesses and how they work. Businesses come in all shapes and sizes, and it's important to understand the variety.
Types of Businesses
Sole Proprietorship: This is a business owned by one person. It's the simplest form of business. The owner makes all the decisions and keeps all the profits, but they also have to handle all the losses and responsibilities.
Partnership: This business involves two or more people who share ownership. They work together and share the profits and losses. Partnerships are great for people who want to combine their skills and resources.
Corporation: A corporation is a more complex business. It's like a separate person in the law's eyes. It can own property, have debts, and be sued. Corporations are owned by shareholders who invest money in the business.
Limited Liability Company (LLC): An LLC combines features of both partnerships and corporations. It protects the owners’ personal assets from business debts and lawsuits, but it's simpler to run than a corporation.
Understanding different types of businesses helps us appreciate the variety and complexity of the business world. Each type has its own features, and knowing these can help you in many ways, whether you’re starting your own business or simply curious about how businesses work.