Corporation, partnership and proprietorship
Briefly define the Terms Corporation, partnership and proprietorship.
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A proprietorship is a business or industry owned by one person. Two or more people who join together to form a business make up a partnership. This can be done on an informal basis without a written partnership agreement, or a contract can spell out the rights and responsibilities of each partner. A limited liability company is a mixture of a partnership and a corporation. Profits and losses have to be bear by the members. Members generally enjoy limited liability. Corporations are authorized entities different from their owners. To form a corporation, the owners specify the governing rules for the running of the business in a contract known as the articles of incorporation. They submit the articles to the government of the state in which the corporation is formed, and the state issues a charter that creates the separate legal entity.
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