(Longenecker, Petty, Palich, Hoy, Pg. 201) This organizational form is most common in small businesses and although it allows the owner to receive all profits it also requires the owner to assume all legal responsibility for the property. • Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” » (Longenecker, Petty, Palich, Hoy, p. 202) In a partnership, the advantage to the owners is the ability to reduce the workload and financial burden, especially if each partner has management skills that improve the 'business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen after all other options have been considered. • Corporation – “A business organization that exists as a legal entity and provides limited liability to its owners.” » (Longenecker, Petty, Palich, Hoy, p. 205) The main advantage of a corporation is that the business responsibility rests with that entity rather than with the individuals who own it. The disadvantages of this organization lie mainly in its constitution. A company is expensive to create and requires compliance with state rules.