What are the advantages and disadvantages of the most common forms of business organization? Which forms are most suitable to different types of businesses?

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What are the advantages and disadvantages of the most common forms of business organization?
Which forms are most suitable to different types of businesses?



Answer: Businesses may be organized as sole proprietorships, partnerships, or corporations. A corporation is legally distinct from its owners. Therefore, the shareholders who own a corporation enjoy limited liability for its obligations. Ownership and management of corporations are usually separate, which means that the firm's operations need not be disrupted by changes in ownership. On the other hand, corporations are subject to double taxation. Large public companies are always corporations.

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