There are numerous approaches to satisfy want, which are the socialist approach, the communist approach and the capitalist approach and even the mixed economy approach. Not-withstanding the approach that is sued in the production of goods and services, they must be produced in firms and industries. Forms of business organizations, therefore, explain the system of ownership of businesses. In order to comprehend business ownership, it is necessary to identify the objectives of business ownership. A businessman may be in business for one of these three reasons; to maximize profit, sociality and political reason. To function, a businessman must own a business, and in this text, business ownership is considered to mean the legal title to and the rights to property, which consists, therefore, the right of possession and disposal of such business.
There are basically two types of ownership which are: private and public. Private ownership exists when that person exercise the right and responsibility of ownership, while the public ownership exists when the public at large or political bodies such as the state, federal or local government creates, exercises and mixed ownership whereby individuals and public bodies share ownership right.
Private ownership is organized as either a sole proprietorship ( a one man business) or as a partnership. Public ownership as corporations are organized either as limited liability or as unlimited liability corporations. The mode of business ownership decides the sharing of profits, responsibility for debts, responsibility for illuminate activities and all questions concerning the operations of enterprises.