different forms of ownership

A business that is carried on by a sole proprietorship is owned by one person, who also usually runs and manages the business. There may or may not be people working in the business these are referred to as employees of the business and the owner is the employer.
The sole proprietorship receives all profits and is legally required to bear and satisfy all losses personally. The sole proprietorship is personally liable for debts of the business. So that, the sole proprietorship has unlimited liability to repay amounts owing, or debts, of the business. For example, if the business incurs debts resulting from a warranty claim, then the individual will be held responsible for those debts, and any claims will be made against the individual’s personal assets. As well, sole proprietorships are taxed under the personal tax system.
The sole proprietorship it is easy to set up and may only require registration of the business name and is free to run the business as he or she thinks best and is not answerable to a boss. As for the name of the business, the name of the owner or any other name may be used. Normally, a sole proprietorship business requires a small amount of capital to start with, compared with other forms of business entities. Examples of sole proprietorship businesses are tailor shops, beauty saloons, restaurants, launderettes and mini market.
Partnership is an association of two or more persons or entities that carry on business as partners. The partners usually run and manage the business. However, there may be a silent partner who does not take any part in the running of the business even though they have contributed capital to the partnership. In a partnership, each partner is personally liable for all debts incurred by the business; in the event of the firm’s failure, each partner’s personal assets are jeopardized.
In the partnership, the partners should have a legal agreement that sets forth how decisions will be made, profits will be shared, disputes