Final answer:
Lessors come in three main types: individual proprietorships, partnerships, or corporations, each with unique pros and cons.
Step-by-step explanation:
Lessors, or landlords, traditionally fall into one of three categories: individual proprietorships, partnerships, or corporations. The type of business ownership reflects the needs of the business owner while also presenting various advantages and disadvantages.
For example, an individual proprietorship offers simplicity and direct control, whereas a corporation provides limited liability and greater potential for raising capital. Choosing the right source of financial capital is crucial; this can be done through early-stage investors, reinvesting profits, borrowing from banks or bonds, or selling stock. The long run indicates a time frame when all factors are variable, granting business owners the flexibility to change location after a lease expires, thereby affecting the type of lessor they may seek or become.