1. Business firms market their products, engage in advertising, and manage a sales force.
2. There are three basic kinds of business firms: proprietorships, partnerships, corporations.
3. The proprietorship has several advantages such as variety of skills, abilities, ease of expansion.
4. Corporations are firms owned jointly by two ore more persons who are co-owners of business for profit.
5. Partnership is an entity formed and owned by a group of people called stockholders and given certain rights, privileges and liabilities by law.
6. Disadvantages of corporation are profit, lack of freedom of action, taxes.