Question

The three legal forms of business ownership are _____. A. Sole proprietorship, partnership, and franchise b. Sole proprietorship, franchise, and corporation c. Partnership, franchise, and corporation d. Partnership, sole proprietorship, and corporation Please select the best answer from the choices provided A B C D.

Answer 1

The correct statement is that the forms of business like Sole proprietorship, partnership and corporation are forms of ownership. So, the correct option is D.

The franchise business form does not give the franchisee an ownership of the business, rather, it gives the franchisee a license to operate its business for such time.

Forms of Business Organization

• Forms of business organization is an establishment of an artificial individual person to conduct business with an intention to share profits and losses, if any.

• A sole proprietorship is such form of business where the control, ownership and management of an organization is in the hands of a sole owner.

• A partnership is an establishment of two or more individual into an agreement of conducting business with a view to share profits in a predetermined proportion.

• A corporation is of two types - private and public. A private corporation is an establishment having at least two members holding share in the company.

Hence, the correct option is D that the three legal forms of business ownership are partnership, sole proprietorship and corporation.

Learn more about forms of business organization here:

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