Form of Business Enterprise
A form of business enterprise refers to the legal structure or classification under which a business operates. The structure determines how the business is owned, managed, taxed, and how it interacts with the law.
Financial management is not restricted to large corporations:
It is necessary in all forms and sizes of businesses.
The three major forms of business organization are:
- Sole proprietorship
- Partnership
- Corporation

These forms differ in a number of factors, of which those most important to financial decision-making are:
- Taxation
- Degree of control
- Owner’s liability
- Ease of transferring ownership
- Ability to raise additional funds
- Longevity of the business