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What are the different types of business organizations?
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The three main types of business organizations are sole proprietorships, partnerships, and corporations. Sole proprietorships are businesses owned by individuals, where profits and losses are reported on their personal income tax returns. Partnerships are formed when two or more people agree to share in the ownership and profits from a business. Corporations are separate legal entities that are created for the purpose of conducting business activities. They have their own shareholders, board of directors, and officers.