Sole proprietorship: business that is owned, and usually managed by one person.
Example: most of the produce sellers at the central market.
Partnership: a business with two or more owners.
Example: some law firms, some accounting firms, etc.
General Partnership: has only General Partners (the General Partners are involved in the management of the firm but they have limited liability).
Limited Partnership: has Limited Partners (the Limited Partners have limited liability but they are not involved in the management of the firm) and at least one General Partner (the General Partners are involved in the management of the firm but they have unlimited liability).
Corporation: a business that is distinct legal entity (that is, that has an existence separate from its owners).
Closed Corporation: the stocks are held by a few people and are not available to the general public.
Example: M&M Mars Corporation.
Open Corporation: the stocks are sold to the general public.
Example: General Motors, Matsushita, Royal Dutch Shell.
Entrepreneur: one who starts a business, including its organization, management and risk-bearing.
Franchising: an arrangement for distributing goods or services that is agreed upon franchiser and franchisee.
Franchiser: the business that owns and sells others the right to distribute its goods and services.
Franchisee: the business that buys the right to distribute franchiser’s goods and services.
Example: many of Mc Donald’s stores, Hampton Inn (hotels).