What are the forms of business?

Asked on by malika786

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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I assume you are asking about the various ways in which ownership of a business can be arranged.  If so, there are three broad ways in which business ownership can be arranged.  These are sole proprietorships, partnerships, and corporations.

A sole proprietorship is a business that is owned completely by one person.  A partnership is a business that is jointly owned by two or more people.  Finally, there is a corporation.  A corporation is a legal entity with a "life" of its own.  A corporation has no owner.  Instead, it is owned by a group of people who own shares in the business.


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