A Quick Lesson in Ways Businesses Are Organized

Structured មានរចនាសម្ព័ន្ធ                   proprietor ម្ចាស់                     owner ម្ចាស់កម្មសិទ្ធ

Partnership ភាពជាដៃគូរ                      

A limited liability partnership ភាពជាដៃគូរការទទួលខុសត្រូវមានកម្រិត

As much មិនប៉ុន្មាន                                accountants គណនេយ្យករ    as long as ដរាបណា

Complex សាំញ៉ាំ                                    stock ភាគហ៊ុន                        is in business ធ្វើពាណិជ្ជកម្ម

Dividend ភាគចំណេញតាមហ៊ុន            shares ភាគហ៊ុន                      entity អង្គភាព 

Board of directors ក្រុមប្រឹក្សា   might អាច       general public សាធារណជនទូទៅ       nonprofit groups ក្រុមមិនយកកម្រៃ

Businesses are structured in different ways to meet different needs. The simplest form of business is called an individual or sole proprietorship. The proprietor owns all of the property of the business and is responsible for everything. For legal purposes, with this kind of business, the owner and the company are the same. This means the proprietor gets to keep all of the profits of the business, but also pays any depts. Another kind of business is the partnership. Two or more people go into business together.

An agreement is usually needed to decide how much of the partnership each person controls. One kind of partnership is called a limited liability partnership. These have full partners and limited partners. Limited partners may not share as much in the profits, but they also have less responsibility for the business. Doctors, lawyers and accountants often form partnerships to share their risks and profits. A husband and wife can form a business partnership together. Partnerships exist only for as long as the owners remain alive.  The same is true of individual proprietorships.

But corporations are designed to have an unlimited lifetime. A corporation is the most complex kind of business organizations. Corporations can sell stock as a way to raise money. Stock represents shares of ownership in a company. Investors who buy stock can trade their shares or keep them as long as the company is in business. A company might use some of its earnings to pay dividends as a reward to shareholders. Or the company might reinvest the money back into the business. If shares lose value, investors can lose all of the money they paid for the stock. But shareholders are not responsible for the debts of corporations.

A corporation is recognized as an entity—its own legal being, separate from its owners. A board of directors control corporate policies. The directors appoint top company officers. The directors might or might not hold shares in the corporation. Corporation can have a few major shareholders. Or ownership can be spread among the general public. But not all corporations are traditional businesses that sell stock. Some nonprofit groups are also organized as corporations.