Describe the three different forms of business organizations (proprietorships, partnerships, and corporations)

Proprietorships are the simplest form a business and allow individuals to operate a business with profits counted as their personal income.

The proprietorship is tied to one person, but if you want a business partner or partners, a partnership uses a structure a bit more complicated than proprietorships that spreads risk and equity among participants. Both sole proprietorship and partnerships expose the owners to personal liability (except for LLC partnerships) and this makes incorporating attractive to protect the personal assets of owners, however, corporations are subject to double-taxation on their income.