The basic concepts of financial management are the same for all businesses, regardless of how they are organized. However, a firm's legal structure affects its operations. The main forms of business organizations are: (1) proprietorships, (2) partnerships, (3) corporations, and (4) limited liability companies (LLCs) and limited liability partnerships (LLPs).

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Social Studies

Devan Wiggins

Today, 16:20

The basic concepts of financial management are the same for all businesses, regardless of how they are organized. However, a firm's legal structure affects its operations. The main forms of business organizations are: (1) proprietorships, (2) partnerships, (3) corporations, and (4) limited liability companies (LLCs) and limited liability partnerships (LLPs).

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Jovan Goodwin · Answer 1

The following are various forms of businesses and brief elaboration on how the legal structure of these businesses affect each:

Proprietorship: A proprietorship business is allowed to have a single owner who is responsible for the functional legalities of the business. Partnership: A partnership business can have multiple owners with shared legal responsibilities associated with the business. Other than legal responsibilities, ownership and profits are also legally shared in this type of business. Corporations: These businesses do not dispense individual ownership. These are run by multiple stakeholders sharing responsibilities amongst themselves. LLCs and LLPs: The legal structure of these businesses is complicated as each player in the business has equal say in the functionality decision of the business.