Business or an enterprise, is a company, or a firm or an organizational entity that is legal and made up of an combination or association of people, sharing a common purpose and unite in order to focus the resources and talents to achieve a specific common goal. A business should be of production, service, profit or non for profit purpose.
There are three main forms/structures of Business.
Sole proprietorship: Sole proprietorship is type of business which is owned and by one person and operates for his own benefits. The owner may although hire employees but he is the sole owner and all profit and loss is bear by him. A sole proprietor has unlimited liability for all obligations incurred by the business. Sole proprietor owns all the assets of the sole enterprise.
Partnership: It is form of business owned by two or more than two people. In majority of the partnerships, every partner bears and unlimited liability for the debts incurred by the business. In some types the liability is limited and the creditors can't sale the personal assets of partners to offset their liability. The three main partnerships are: general partnerships, limited partnerships, and limited liability partnerships.
Corporation: A corporation is a business enterprise that has a separate legal personality from its owners. Corpoarations are also called as limited liability companies as the owners have the liability to the extent of shares they own.The corporation has a separate legal status from its owners. Corporations can be either government or privately owned. They can be listed or non listed. In corporations majority of the strategies decisions including policy making are being approved by Board of Directors.