What are the primary differences among a sole proprietorship, a partnership, and a corporation?

What will be an ideal response?

The sole proprietorship is a business operation owned and managed by an individual. Initiating this form of business
is simple and generally does not involve any substantial organizational costs. The proprietor has complete control of
the firm but must be willing to assume full responsibility for its outcomes.
The general partnership, which is simply a coming together of two or more individuals, is similar to the sole
proprietorship. The limited partnership is another form of partnership sanctioned by states to permit all but one of the
partners to have limited liability if this is agreeable to all partners.
The corporation increases the flow of capital from public investors to the business community. Although larger
organizational costs and regulations are imposed on this legal entity, the corporation is more conducive to raising large
amounts of capital. Limited liability, continuity of life, and ease of transfer in ownership, which increase the
marketability of the investment, have contributed greatly in attracting large numbers of investors to the corporate
environment. The formal control of the corporation is vested in the parties who own the greatest number of shares.
However, day-to-day operations are managed by the corporate officers, who theoretically serve on behalf of the firm's
stockholders.