Proprietorship
A Proprietorship is a business firm that is owned by a single individual who is fully liable for the debts of the firm. In addition to assuming the responsibilities of ownership, the proprietor often works directly for the firm, providing managerial and other labor services. Many small businesses, including neighborhood grocery stores, barbershops, and farms, are business proprietorships. Proprietorships account for 72 percent of the business firms in the United States. Because most proprietorships are small, however, they account for less than 5 percent of all business revenues.
A partnership consists of two or more persons who are co-owners of a business firm. The partners share risks and responsibilities in an agreed-upon manner. There is no difference between a proprietorship and a partnership in terms of owner liability. In both cases, the owners are fully liable for all business debts incurred by the firm. Many law, medical, and accounting firms are organized along partnership lines. However, this form of business structure accounts for only 8 percent of the total number of firms and 10percent of all business revenues.