What is the classification of business organization according to ownership?
Sole/ Single Proprietorship- form of organization wherein there is only in a business. - oldest form of business organization.Partnership- a business owned and operated by 2 or more persons who bind themselves to contribute money, property or industry to a common fund with the intention of dividing the profits among themselves.Corporation-the most common form of business organization, and one which is chartered by a state and given many legal rights as an entity separate from its owners. This form of business is characterized by the limited liability of its owners, the issuance of shares of easily transferable stock, and existence as a going concern.Cooperative is a business organization owned and operated by a group of individuals for their mutual benefit.[1] Cooperatives are defined by the International Co-operative Alliance's Statement on the Co-operative Identity as autonomous associations of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through jointly-owned and democratically-controlled enterprises.
Related Q&A：
What legal form of business organization is most common？Well, in the United States, the most common legal form of business organization is probably the sole proprietorship. You know, it's super simple to set up. A lot of small businesses start this way. But as the business grows, a lot of folks might switch to a limited liability company (LLC) or a corporation. LLCs offer some protection for personal assets, which is a big plus. Corporations are often chosen for larger operations because they can raise capital more easily. But for a lot of small-time entrepreneurs just starting out, the sole proprietorship is the way to go.
