voa economic report - Starting a Business Means Getting Organized

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is the VOA Special English Economics Report. Businesses are in different ways to meet different needs. The simplest of business is called an individual proprietorship. The proprietor all of the property of the business and is for everything. This means that the proprietor gets to all of the profits of the business, but also pay any debts. The law recognizes no difference between owner and the business. Another kind of business is partnership. Two or more people go into business together. agreement is usually needed to decide how much of partnership each person controls. There are limited liability partnerships. have full partners and limited partners. Limited partners may share as much in the profits, but they also not have as many responsibilities. Doctors, lawyers and accountants form partnerships to share the profits and risks of business. A husband and wife can form a business . Partnerships can end at any time. But partnerships and proprietorships exist only as long as the owners are . The most complex kind of business organization is the . Corporations are designed to have an unlimited lifetime. Corporations sell stock as a way to raise money. Stock shares of ownership in a company. Investors who buy can trade their shares or keep them as long the company is in business. A company might use of its earnings to pay dividends as a reward shareholders. Or it might reinvest the money into the . If shares lose value, investors can lose all of money they paid for their stock. But shareholders are responsible for the debts of the corporation. A corporation recognized as an entity ---- its own legal being, from its owners. A board of directors controls corporate . The directors appoint top company officers. The directors might might not hold shares in the corporation. Corporations can a few major shareholders. Or ownership can be spread the general public. But not all corporations are traditional that sell stock. There are nonprofit groups that are organized as corporations. And that's the VOA Special English Report, written by Mario Ritter. You can learn more business and economics by downloading transcripts and MP3 files our reports at voaspecialenglishcom.. I'm Faith Lapidus.

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