Entrepreneurs must choose a form of legal ownership that best suits their needs. Sole proprietorship, a business owned and operated by 1 person; your business is an extension of yourself and not a separate legal entity. Partnership, a form of organization estb d when 2+ persons agree to combine their financial, managerial, and technical abilities for the purpose of operating a business for profit. > general partnership, a type of partnership in which all the partners are jointly liable for the obligations of the business (a share in profits, management, and debt) > limited partnership, a type of partnership w/ @ least one general partner (who has unlimited liability) and one or more limited partners. The limited partners cannot participate in the day-to- day management of the business or they risk the loss of their limited liability status. >> general partners, partners who are actively involved in managing the firm and have unlimited liability.