Describe the different forms of businesses including sole proprietors, general and limited partnerships, private and public corporations

Different form of business their advantage and disadvantages are given below-

• Sole Proprietorship- It is a form of business which owned and operated by an individual for his/her own interest or benefit. The existence of business, its operation process totally dependent on the decisions of the individual owner. The advantage are-the whole profit is enjoyed by the owner, the business can be started easily by the owner without facing much hassle. The disadvantage are- ownership of the business is difficult to transfer and owner have to face the whole loss of the business as he is the only one liable for all business debts.
• Partnership- In a partnership business the business is owned by two or more persons. It can be of two types general and limited. In general partnerships, both the partners who owns the business invest their property, money or labor. They both are liable for their debts in business and it do not require a formal agreement. On the other hand in limited partnership there requires a formal contract or agreement between the partners and according to that agreement they invest their part of money in the business. The advantage are-helps to gather more capital for the business, the design of the business is simple and have much flexibility. The negative aspect is- selling of the business is problematic and the business almost end or face loss, difficulties if one or more partners leave the business.
• Corporation-It is a mode of business which operates by announcing the business as a separate legal entity. It is guided or accompanied by a group of experienced officers said to be the board of directors of the company. It can be of two type- private corporation and public corporation which is directed by the government. The positive side of this type of business are- now most of the business of the world are corporation, the profit and loss is shared by all and the business can be easily and fairly transferred. The negative side are- operating a corporate form of business is costly and the corporate tax is high comparing other businesses.