Different Forms of Business: Exploring Definitions and Scenarios

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The Many Forms of Business: Exploring Definitions and Scenarios Introduction As individuals who operate in the business world understand, there are many different types of business. Laymen alike have a general understanding of these differences, as many individuals immediately understand upon making purchases that buying groceries from a fall family-operated grocery store is far different than purchasing a new television from a nationally-operated chain. While many people understand that certain differences between these types of businesses exist, it is far less common for an individual to understand the specifics. The world of business is vast and varying, containing categories such as the sole proprietorship, the partnership, the limited liability partnership, the limited liability company, the s-corporation and franchise. In beginning to understand the differences between these categories of business and in understanding the situations in which these types of business are created, one can get an immediate glimpse of the exiting and complex world of business from which we as a society consumer every day. Understanding the Categories of Business While the many different categories of business are all different in their respective makeup, one factor remains the connecting thread that links them all: the hope to secure a place in the market and turn a profit. In viewing these categories, it is best to start with the most simple: the sole proprietorship. A sole
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