The management and control of businesses. The simplest form of management is actually a partnership. In Anglo-American legal and civil-law jurisdictions, each partner (other than an individual limited partnership) is allowed to participate in the management of an enterprise's business; but a joint venture agreement can provide that all partners are legally bound to work together towards the common goal of earning the highest profit possible.
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The next most complex form of management and control is a business corporation. Under this system, the corporation must be organized as a separate legal entity separate from the individual owners; and the members of the corporation are allowed to participate in decisions regarding its business operations. A company with a board of directors does not need to be run by an owner, as that would make it a mere shell, instead, it would be run under a corporate code.
Another one of the most effective forms of management and control is a sole proprietorship. While there is some leeway given to the proprietor in how the business is conducted, the structure of the organization remains essentially the same as that of a corporation.
A sole proprietorship, which is also an effective form of control, is run by an individual or group of individuals. This allows each proprietor, the ability to conduct their own affairs, while being completely in charge of their business. As an option, a business can be incorporated as a sole proprietorship, which means the corporation is not formed as an entity separate from the owner of the business.
Lastly, the most complex form of control and management of an enterprise is a Limited Liability Company (LLC). An LLC has its own set of laws that govern how it is operated, but there are few options that can be taken to make the owner less involved in running the business. If the business is run by an individual, the person that is running the business can retain control of it; however if they are not the owner, they may only be able to obtain a limited share of profits.
Every one of these types of entities are designed for a unique purpose. Each one of them provides the business owner with different aspects of responsibility to the company. They are all designed to help the company meet its goals, and reach its success; however if these goals are not met, it can cause a great deal of difficulty for the company. So, when you own a business, take a moment to look into each of these types of business and management and see how they can best fit your business.