Sole Proprietorships are just owned by one person. Partnerships have at least two, sometimes more, but usually all the owners are actively involved in running the business. Bigger companies want “Limited Liability” – where someone can be an investor, but not personally on the hook for debts if the business goes bankrupt. This is where corporations come into play!
When a company starts to grow, one of the biggest questions they face is how to organize their management. The two main branches of management roles are centralized and decentralized authority – which often translates to how many levels of management need to sign off before a change can be made