Final answer:
A sole proprietorship is a business owned by one person, a partnership is a business owned by two or more people, and a corporation is a separate legal entity. Each has its advantages and disadvantages, and the choice of business structure depends on various factors.
Step-by-step explanation:
A sole proprietorship is a business owned and run by one person. Some advantages of a sole proprietorship include simplicity in decision-making, full control over the business, and minimal legal requirements. However, there are also disadvantages such as unlimited liability and limited access to financial resources.
A partnership is a business owned by two or more people. Advantages of partnerships include shared responsibilities and resources, while disadvantages include potential conflicts between partners and unlimited liability.
A corporation is a legal entity that is separate from its owners. It has its rights and obligations and can continue to exist even if its owners change. Advantages of a corporation include limited liability for shareholders and access to more financial resources. Some well-known corporations include Apple, Microsoft, and Coca-Cola.
If I were to own a business, I would consider the nature of my business and my goals before deciding whether to establish a sole proprietorship, a partnership, or a corporation.