What are the factors which make the types of organizations different from each other?

Answer 1

Organizations and businesses are generally categorized under 3 different categories:

Sole Proprietorship (1 owner assuming all business relation and operation risk)

• Usually this is a small to medium size enterprise, such as a local pub, a law office or an Accountant firm.
• The owner is liable to pay for and be held accountable for any faults of the business, including negligence that results in a tort being committed.

Partnership (2 or more owners are responsible for the success or failure of the business)

• Usually this is a small to medium size enterprise, but has more leniency for the various owners, and they can learn to do eachother's jobs in the event of an emergency or when taking vacation
• Conflicts can arise quickly when 2 or more people are making decision on the same
• The owners are liable to pay for and be held accountable for any faults of the business, including negligence that results in a tort being committed. The partnership offers a means of spliting the cost of such incidences by 5

Corporation (A non-human organization that is often directed with a CEO, board of directors, and various other managers to support functioning throughout the entire company.)

• Although the corporation itself is a separate entity and not a person itself, it is managed by real people who are held accountable for different areas of the business's operation, although fines paid by a corporation is much less harmful to you personal bank account compared to a corporation, as the organization can only afford to pay for charges and other liabilities that can be afforded with cash on hand, or liquidible assets (assets that are easily converted to cash).

That's the summary of each type of business ownership, and should help entrepreneurs find the right business type to register for.