Question

list and define three primary classifications of business

Answer 1

Three primary classifications of business are as following:

Sole proprietorship and partnership business:

The sole proprietorship and partnership business are different structure of business compare to the LLCs and corporations. The main difference between the sole proprietorship, partnership business and LLCs & corporations is that the sole proprietorship and partnership businesses do not have separate legal identity different from its owners. The legal requirements are relatively less for such business.   

Limited liability Company:

LLCs are limited liability companies thus, such businesses have different legal identity however, and the liability of the owners and investors of such business are limited by shares or other means.

Corporations:

The largest form of business is corporation which requires lots paper and legal work before formation. Business formed as corporations have separate legal identity of its own thus, it can contract in its own name, attracts liability in its own name, acquire and hold assets in its own name.