For Profit

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Wikis > For Profit

Definition

A for-profit business is a type of enterprise that generates revenue that increases the wealth of its owners. These firms are involved in the trade of goods and/or services to their consumers and are abundant in capitalist economies.

Types of For-Profit Ownership

Sole proprietorship: owned by one person who has unlimited liability for the firm

Partnernship: owned by two+ persons with shared unlimited liability for the firm

Cooperation: also referred to as “co-op”, this limited liability business has members instead of shareholders who make the decisions about the company

Corporation: limited liability business owned by shareholders who elect a board of directors to run the company. There is a separate legal personality for its members.

Types of For-Profit Business

Benefit Corporation: see Benefit Corporation

S Corporation: S Corporation

C Corporation: C Corporation

LLC: see Limited Liability Company