| Businesses are structured to meet different needs. One basic difference involves who is responsible for the business. Another involves how long the organization can stay in business. The simplest form of business is called an individual proprietorship. The proprietor owns all the property of the business and is responsible for it. This means the proprietor receives all the profits, but must also pay all the debts of the business. Also, any legal action against an individual proprietorship is taken against the owner. The law recognizes no difference between the owner and the business. Another kind of business is the partnership. Two or more people go into business together. An agreement is usually needed to state how much of the partnership each person controls. They can end the partnership at any time. But partnerships and individual proprietorships exist only as long as the owners are alive. |
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