The owner can lose everything if business is bad. The owner has unlimited risk. This type of business is typically small, but they are the most common form of business. Partnership More complicated form of business. It involves two or more individuals who agree to contribute to the business for a share of the profit or loss.
Examples are law firms, doctor s offices, etc.
Business can be disrupted if one of the partners leave or die. Each partner faces unlimited liability in the event of failure. A corporation is a legal entity. It is like a person. Owners of a corporation are issued stock.