What are the three legal forms of business organization? Which form of organization is dominant in the terms of total profits, and why?

One of the three most common forms of business organization are sole proprietorships, where there is one business owner and his business and personal assets are mixed. Next, there are partnerships of two or more business owners, whose business assets are separated from their personal finances. Finally, there are corporations, which are legally treated as separate entities and have some legal rights as though they were a person.

Although a sole proprietorship is the most common form of business organization, corporations make the most profit, because they are able to grow much larger than partnerships or sole proprietorships.