There are three major forms of business organization:

1. Sole proprietorship – owned by a single person, when it comes to profit this form
of business is an advantage to the owner because the profit will all go to the
owner. However, if the owner is someone who are not fortunate well to start a
business he will find hard to raise capital, and there’s an unlimited liability and
potential loss if the business will not go well.
2. Partnership – owned by two or more persons, this kind of business is easy and
inexpensive to form because there are two or more people will be involve in
raising a capital, and when it comes to formulating strategy for the business there
are diverse skills and expertise will be used. On the other hand, potential
conflicts between the partners may arise, and the profit that will incur by the
business will be divided according to the partner’s agreement.
3. Corporation – has its own legal identity separate to the owners, mostly
corporations are owned by stockholders because they are the one who provides
unlimited capital to the corporation and they also have the right to participate
actively in the management unless they have serve as directors or officers. In a
corporation liability is only limited to the entity itself and its life span is unlimited.
However, it is subject to double taxation of profits and govern by policies set by
the government.

Organizing

 Organizing is a managerial process that defines the role of each person in an

organization to achieve objectives set by the management of the
organization. Regarding establishing a rights-responsibility relationship
among all and to provide harmonious group action to coordinate as an inbuilt
device in the enterprise.
It affects how relationships working between individuals and groups within an
organization complete and coordinate their activities. Effective organizing
depends on many important concepts like work expertise, delegation,
duration of control, a chain of command, authority, and decentralization
versus centralization.