The term business refers to an organization or enterprising entity engaged in commercial, industrial, or professional activities.All businesses must adopt some legal configuration that defines the rights and liabilities of participants in the business's ownership, control, personal liability, lifespan and financial structure.Some advantages for business such as independence, financial gain, control, prestige and Equity and some disadvantages fod business are time commitment, risk, uncertainly and financial commitmment.The form of business determines which income tax return form to file and the company's and owners legal liabilities.The purpose of a business is to organize some sort of economic production of goods or services.One of the first steps in starting a new business is determining how your company should be structured.You need to know the advantages and disadvantages of each of the different forms of business organization to make sure you're making the right decision for your new business.