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The scale and scope of the business agency and its construction, administration, and ownership, broadly analyzed within the theory of the firm Typically, a smaller business is more versatile, while bigger businesses, or those with wider ownership or extra formal constructions, will normally tend to be organized as firms or (much less often) partnerships. In addition, a business that needs to boost cash on a stock market or to be owned by a wide range of people will typically be required to adopt a particular legal form to take action.

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