Three types of organization:

1. Solo
2. Partnership- shared with efforts, profession.
3. Corporation- company that dealing with stock. Stock is signifies ownership.

Preferred stock holder- Board of Directors or big ownership

Common stock holder- individual owner

What is the difference between stock holder and share holder?

Advantages of corporations:
1.
2.
3.
4.

Limited liability
Easy to raise capital
Perpetual life
Specialize management

Disadvantages of Corporations:
1. Formal and impersonal employer /employee relationship
2.