Question

1. “Business may be owned by an individual or a group of persons.” In the light of the above statement enlist different forms of business organizations and explain how they are different from each other.

Answer 1

The business owned by an individual is known as sole proprietorship the advantage of this business is that it's easy to set-up and less costly and is usually adopted by people who are seeking to run small businesses. Whereas business owned by a group of people is either known as partnership or corporation. The partnership consists of two or more people in which the profits have to be shared among themselves and even the losses are shared among each other. While in Sole Proprietorship all the profits are enjoyed by the owner himself and the losses have to be faced by the individual himself.