Final answer:
A sole proprietorship is owned and run by one person, a partnership involves two or more individuals sharing profits and losses, a corporation is a separate legal entity owned by shareholders, and an LLC combines the liability protection of a corporation with the tax advantages of a partnership.
Step-by-step explanation:
A sole proprietorship is a business owned and run by one person. The owner is responsible for all debts and liability of the business, as well as being entitled to all profits generated by the business. An example of a sole proprietorship is a small law firm run by one person.
A partnership is a business owned by two or more individuals who share in the profits and losses of the business. An advantage of a partnership is that the workload and responsibilities are shared among the partners. An example of a partnership is a larger law firm owned jointly by its partners.
A corporation is a separate legal entity owned by shareholders who have limited liability for the debts and obligations of the corporation. Corporations can issue stocks and raise funds from investors. An example of a corporation is Cargill, a farm products dealer.
A limited liability company (LLC) is a business structure that combines the liability protection of a corporation with the flexibility and tax advantages of a partnership. An LLC is owned by members and allows for pass-through taxation. An example of an LLC is Bechtel, an engineering and construction firm.