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April 10th, 2013Microeconomics: Business OrganizationA business is an organization that brings individuals, financial resources, and economic resources together to bring a good or service for economic gain.Businesses are organized into one of three forms:1.Sole proprietorship- business owned by a single person2.Partnership- business owned by two or more people3.Corporations- business that has legal status independent of its owners; a legal entity in which ownership involves purchasing sharesThe principle of unlimited liabilitymeans the owners of sole proprietorships and partnerships are responsible for their company's obligations. As such, they may see the seizure of personal belongings and private savings to pay off outstanding debts (input costs, labor costs, taxes, legal fees, ect.). In contrast, corporate shareholders enjoy the advantage of limited liability, meaning that they can lose only what they put into the business.Production means to transform raw inputs (natural resources, capital resources,