① What are the three major forms of business organization?

Expert Solution

The three major forms of business organizations are:

1. Sole Proprietorship

2. Partnership &

3. Corporation

Sole Proprietorship: Ownership : In this form of organisation the ownership lies with a single person i.e. the proprietor of the buiness. Along with the ownership all the liabilities and responsibilities are with the sole proprietor of the organisation

Partnership: Ownership: In a partnership form of organisation more than one person come together to form a business and all of them bring in capital in a decided proportion and they own such decided portion of the organisation. They share liabilities and responsibilities in the pre determined proportion i.e. profit sharing ratio

It is managed by all the partners together or by any working partner as decided by all of the partners.

Corporation : Many people contribute to the Capital of the organisation and the management lies with the directors and the management ho are elected by the shareholders and are completely answerable and responsible to all the stakeholders.

jeff jeffy answered 2 years ago

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