The three main types of business entities are:
A) Trust, sole proprietorship and not-for-profit.
B) Not-for-profit, partnership and company.
C) Sole proprietorship, company and trust.
D) Company, partnership and sole proprietorship.

Question

Quizplus · Accepted Answer

These three types of business entities are the most common and recognized by law. A company is a separate legal entity from its shareholders, offering limited liability and potentially unlimited growth opportunities. A partnership involves personally liable partners who share profits and losses. A sole proprietorship is an individual who owns and operates a business and is personally liable for any debts or obligations. The choice of business entity will depend on factors such as ownership structure, liability protection, taxation, and desired level of control.

The Three Main Types of Business Entities Are