
Concept Introduction:
Forms of the Business Organizations:
A business can be formed into any of the business organization types like,
• Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.
• Corporate form: Corporate form is the most complicated and wider form of business organization. It creates a separate legal identity of the business and allows the business to raise funds through public issue.
• Sole proprietorship: Amongst all of the business organization forms, a sole proprietorship is the simplest form. Under a sole proprietorship, the business is owned and controlled by a single person.
To determine: The form of business organization, tax liability and one advantage of the form of business organization for the owner for each of the given case.

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Chapter 12 Solutions
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