• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
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HOME > Archive > 2026 > Volume 14 Number 3 (2026) >
JOEBM 2026 Vol.14(3): 212-215
DOI: 10.18178/joebm.2026.14.3.941

Understanding Business Types and Structures: A Review of Modern Corporate Forms from Sole Proprietorship to Multinational Corporations

Tingxuan Liao
Tingxuan Liao
St Anthony’s Highschool, New York, America
Email: Ltx090506@163.com

Manuscript received June 25, 2026; accepted August 17, 2026; published September 9, 2026.

Abstract—This paper uses a literature review method to examine four common types of business structures in modern society: sole proprietorship, partnership, corporation, and limited company. As businesses continue to develop from small local shops to multinational enterprises, understanding these structures becomes increasingly important because each type involves different levels of responsibility, risk, management style, and growth potential. The paper discusses the main characteristics, advantages, and disadvantages of each business form and explains the situations in which each structure is most suitable. In addition, real-life examples such as Apple and Starbucks are included throughout the discussion to provide a clearer understanding and practical application of the concepts. The study finds that sole proprietorships and partnerships are often preferred by small or local businesses because they are easier to establish and manage, while corporations and limited companies are more suitable for large-scale operations due to their legal protection, stronger organizational structure, and greater ability to raise capital. Overall, the paper concludes that selecting an appropriate business structure is a strategic decision that should be based on the size, objectives, financial needs, and risk tolerance of a business.
 
Keywords—sole proprietorship, partnership, corporation, limited company, business structure

Cite: Tingxuan Liao, "Understanding Business Types and Structures: A Review of Modern Corporate Forms from Sole Proprietorship to Multinational Corporations," Journal of Economics, Business and Management, vol. 14, no. 3, pp. 212-215, 2026.

Copyright © 2026 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

 

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