CFA® Level I Corporate Issuers - Types of Business Structures

A sole proprietorship is a type of business structure where a single individual owns and operates the business. The owner is personally responsible for all debts and obligations incurred by the business.
A general partnership is a type of business structure where two or more individuals own and operate the business together. The partners are personally responsible for all debts and obligations incurred by the business.
A limited partnership is a type of business structure where there are one or more general partners who manage the business and are personally responsible for its debts and obligations, and one or more limited partners who contribute capital to the business but are not involved in its management and are not personally responsible for its debts and obligations.
A corporation is a legal entity that is separate and distinct from its owners, known as shareholders. The shareholders elect a board of directors to manage the corporation and the board appoints officers to run the day-to-day operations of the business. The shareholders are not personally responsible for the debts and obligations of the corporation.
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Excellent explanation. Very easily explained.