Legal, Social, and Economic Environments of Business
Jessica L. Kuhn
American Intercontinental University

Abstract
An inventors has an invention in which he believes will be successful, but he does not have the funding to get it to the market on his own. The three types of business: proprietorship, partnership, and corporation, their advantages and disadvantages are covered in detail in this paper, as well as a brief definition of each.
Brief Interpretation of the Scenario The problem in this scenario is the individual that invented it believes that it will be of use to outside parties, but he or she does not have the money to fully finance the duplication and distribution of his or her product. The best way for him or her to get the funding and get his product out to the general public would be a partnership business, in which he would gain a better financial standing by having a second, or perhaps even third parties financial assistance
Advantages and Disadvantages of Proprietorship, Partnership, and Corporation
The three different types of business are sole proprietor, partnership, and corporation. Each type has its pros and cons, its positive and negative aspects.
Sole proprietorship is when one person owns and runs his or her own business. Therefore, he or she is individually responsible for all moneys owed, to investors, employees, and et cetera. A sole proprietor can sell his or her business as they see fit or give it away to a family member or friend. He or she has to pay taxes on their business’s income. The owner of the business has control over all aspects of the business. A huge downside to having a sole proprietorship business is that the actions or inactions of an employee of the business become the direction problem of the owner.
Partnership businesses are formed when two or more individuals agree to start a business and split the