Briefly define the terms proprietorship, partnership, and corporation.

A proprietorship is a business possessed by one person.

Two or more people who unite together to form a business make up a partnership. This can be done on an informal foundation without a written partnership agreement, or a contract can spell out the responsibilities and rights of each partner.

A restricted liability company is a hybrid between a corporation and a partnership.  Profits and losses pass through to the members.  Members generally enjoy limited liability.

Corporations are legal entities that are separate from their owners. To form a corporation the owners stipulate the governing rules for the running of the business in a contract known as the articles of incorporation. They propose the articles to the government of the state in which the corporation is formed, and the mention issues a charter that creates the separate legal entity.