Business is based on at least four (4) factors: capital, labour, materials or services and entrepreneurship. Put another way, starting up and operating a business requires financing, manpower, product and the possibility of making a profit. The fundamental structures are: the sole proprietor (one man operation), the partnership and the corporation. Corporations are established to avoid the personal liability of the persons operating the corporation and to gain tax advantages such as low corporate tax rates. Variations of these three (3) themes include the joint venture (a mix of partnership and corporation) and the franchise (a mix of corporations, lease, licence.
