What are the basic forms of ownership?

2 Answers

pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

I assume that you are asking about the forms of ownership of a business.  If so, there are three main types of ownership.

The first is a sole proprietorship.  This is the simplest sort of ownership.  It has one owner who can do whatever he or she wants with the business.

A slightly more complicated form of ownership is a partnership.  There are different kinds of partnerships, but the general idea is that two or more people own the business jointly.

Finally, there is the most formalized and impersonal form of ownership, the corporation.  A corporation is a legal entity that is separate from its owners.  They hold stock in it, but do not own it in the same sense that sole proprietors or partners own their firms.  Corporations must submit a great deal of documentation and paperwork that is not needed in the other forms of ownership.

junepinto00's profile pic

junepinto00 | (Level 1) eNoter

Posted on

There are basically three types of business structures or forms:

1. Sole Proprietorship: In this form, the owner takes all the decisions.

2. Partnership: This type of business structure is owned by more than one person.

3. Corporation: This type is generally owned by shareholders.



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