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The three major traditional forms of business organization are 1) sole proprietorship 2) partnership and 3) corporations. Sole proprietorship is the simplest form of business and the owner is the business. Some advantages of sole proprietorship are the proprietor takes all the profits, fewer legal forms are involved which makes it easier to start than other kinds of businesses, more flexibility because the proprietor can make all the decisions freely, and only personal income tax on profits are paid by the owner. There are also disadvantages to sole proprietorship. Some disadvantages are that the proprietor is liable for all debts, opportunities to raise capital are limited, and when the owner dies the business dissolves.

When there is an agreement between two or more persons to carry on a business for profit it creates a partnership. Some advantages of a partnership are enhanced borrowing power because there are more owners, income is included and taxed on partner's......

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Approximate Word Count: 440
Approximate Pages: 2 (250 words per double-spaced page)

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