Compare and contrast two different business forms (sole proprietorship, general partnership, limited partnership, and limited liability forms (corporation or corporation). What makes the two different? Which situations would be most appropriate each form chosen in? For someone who aspires to own a small clothing store, sole proprietorship may be more suitable for them individual looking for a business venture in the legal/medical sector may want to set up a general partnership example could be an individual who is trying to open his own beauty salon it would be better to choose a sole proprietorship. The sole proprietorship can be defined as the simplest form of business organization. This form is the simplest form of ownership in which that The individual would have complete control over decisions they see fit along with the right to retain all profits from their business. Now, this can be a great decision based on your current business and how successful it is getting customers and orders. A great advantage of withholding profits would be to automatically be included in individuals' tax returns when the time comes. This is a great tool to not only save time, but also get something extra when February rolls around. Some examples of a sole proprietorship could be your small local coffee shop, a bed & breakfast or even a dog groomer. Most small mom-and-pop shops tend to be sole proprietorships, whether it's a donut shop or a small machine shop. However, some disadvantages include unlimited liability; being the sole owner you are responsible for all debts within the company. Being the sole owner of a business comes with a huge responsibility, as well as creating capital for t...... middle of paper ......ted Partnership can be defined as a different form of partnership collective that requires a partnership agreement between all parties involved. This agreement may include things like information about the business, what products or services will be provided at the establishment. There must be at least one general partner in the group to form a limited partnership. This person will be the leader of the team and will manage operations, as well as be responsible for decisions for the company. All those who are limited partners have no authority in decision making or management of operations. However, they are not fully responsible for any debts or other financial problems of the company. Personally, limited partners can be seen as an investor more than anything else. In fact, the only thing they stand to lose is their investment in the business if something were to go wrong.