Choice of a suitable from of business ownership is a very crucial decision which has to be taken by every entrepreneur while launching a new enterprises. This decision effects the success of a business firm because the division of profits, the extent of liability, the available of finance, the tax burden and the degree of control all depend upon the form of ownership. It is a long term commitment which cannot be changed easily. As such, the form of business ownership should be chosen very carefully. Selection of the proper form is a matter of careful deliberation and judgement as mistakes committed in the choice may prove very costly later on. A comparative evaluation of different form is, therefor,required to make an appropriate choice. The form of ownership organisation should be adapted to the requirements of the business.
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