There are four classes of business ownership:

Sole proprietorship – a business owned by one person.

Partnership – a business in which two or more people operate for the common purpose of making a profit.

Business Mentor – a corporation is a limited liability entity that has a separate legal personality from its members.

Cooperative – Often referred to as a “co-op”, a limited liability entity that can organize for-profit or not-for-profit. A cooperative differs from a corporation in that it has members, as opposed to shareholders, who share decision-making authority.

Your online entrepreneur mentor program tutor wishes to expand on what a business is and how it comes into existence. As I mentioned earlier, building a business is labor intensive and has many facets. A business begins as an idea in the mind of a person or persons. It is my experience that whatever the business idea is, it is most important that the idea be something that is heartfelt, it should be something they love, something that the person(s) are passionate about.

Having passion about the business idea is the first challenge that a new business will face. When the business idea does not adequately reflect the passions of the person(s), there will come a day (out of the blue) that all hell will break loose in the business and they will lose heart and surrender the business very easily.

On the other hand, if they start a business from their passions they will fight harder to save their business. Passion will constrain themselves to look forward to doing the work necessary to make the business successful, defying the odds.