Question

what are the three basic formsof businessorganizations for profitoriented enterprises

Answer 1

The three basic forms of business organizations are sole proprietorship, Partnership and Corporation.

Sole Proprietorship is a form of business organization that is formed and owned by one person. He is responsible for all the liabilities and is the sole owner of profits. He is called a sole proprietor.

Partnership is a form of business organization that is formed by two or more persons. The persons who formed the partnership are called partners. They are jointly responsible for all the liabilities. They share the profits earned by the partnership.

Corporation is a form of business organization which is formed by issuing shares. The persons who hold shares are called shareholders. The shareholders are not personally responsible for the liabilities of the corporation.