What are the forms of business? How do they differ from each other?

The forms of business are sole proprietorship, partnership, and corporation. A

sole proprietorship is a business that is owned by a single individual. It is the simplest to
set up and the least expensive of all ownership options. The owner is subject to
unlimited liability, which means that the firm's creditors may pursue the owner's
personal assets if the business is unable to pay them. Small businesses typically use the
sole proprietorship structure. A partnership is formed when two or more people
contribute funds to the operation of a firm. The earnings of the firm are divided among
the partners according to agreed-upon parameters. And the corporation is a commercial
entity that has a legal identity distinct from its owners. Shares of stock are used to
symbolize ownership in a stock corporation.