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The Complete Idiot's Guide to MBA Basics, 3rd Edition by Tom Gorman

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Forms of Business Organization

A business may be organized in four basic ways: proprietorship, partnership, corporation, or limited liability company.
 
A proprietorship (also known as a sole proprietorship) is a business owned by an individual. That person, the proprietor, has the right to the profits generated by the business and is personally responsible for its debts. Most small businesses are organized as proprietorships, and any self-employed individual is essentially a proprietor. Although there is no legal limit on how large a proprietorship may become, most large businesses are organized as partnerships or corporations so that multiple owners have a share in the profits. Only a corporation can use the term incorporated in its name. ...

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