 When we talk about corporate firm, this mean an organized business setup that is involved in regulating and conduct of economic activities. A firm is an organized form of business that works in an organized way to conduct economic activities and generate income or profit for the owner. But in doing so, the firm faces a serious problem and this problem is related to the collection of cash that how to collect cash, when to collect cash and where to collect cash. Corporate corporate firm is the standard method to solve this problem and a corporate firm has the ability to collect even a larger amount of cash effectively and efficiently. When we talk about forms of business organization, we can say that there are three types of business organizations. The first is sole proprietorship. The second is a partnership firm and the third is a corporation or a joint stock company. Sole proprietorship, this is the simplest form of business organization. It requires only a single person to act as honor in order to set up the business, run the business and operate that business. It is very easy to start this type of business as it requires little amount as capital end. Even no documentation is required to start this type of business organization. It creates an employment for the owner. So, it is a self-employed business. This business does not require any serious regulation. In this type of business, the profit earned by the business firm is taxed as the individual's income but beside these major advantages, this type of business bears two major drawbacks. The first is the limited life of the business. The life of the business is associated with the life of its owners. If the owner dies, this may end up the life of the business. The second major drawback of the business is the limited liability. This means that if there are losses to the business, the personal property of its owners can be used in order to make these losses good. So, these two major disadvantages of sole proprietorship firm makes hindrance in its growth but in case of dissolution of such type of business, it is very easy to dissolve this business as it requires no governmental permission or even no other regulations to follow. It requires only the owner's will to make the life of the business completed and finished. The second major form of business organization is the partnership firm. It is extension of the sole proprietorship. This form of business requires to have two people to start the business organization as a partnership firm. This business organization is required to get registered under a certain law and acted for regulating partnership firm businesses. In Pakistan, there is a law named as partnership act 1932. So, this is the act that regulates all business activities conducted by a partnership firm. In this type of business, individual partners bring their capital and this capital is pulled and it becomes the capital of the whole organization as a single amount. In this type of business, joint efforts of the partners are used in order to managerially solve the business problems. There is a benefit of this as two minds are better than one mind. Another benefit of a partnership firm is that risk in this type of business is shared by all the partners. Then there is another benefit that liability of the firm is jointly shared by the partners involved in the partnership firm. Like sole proprietorship, taxable income of the firm is taxed as the individual income of the partners. Like sole proprietorship, partnership firm also bears two major drawbacks in terms of limited liability, unlimited liability and limited life. In case of losses to the firm, partners' personal assets or properties are used in order to make the losses good. In case of death of any partner, the life of firm may come to an end only if the remaining partners are not interested to carry on the firm. Like sole proprietorship, a partnership firm can easily be dissolved. The dissolution may come to in existence only if a partner or more partners are not willing to continue the business. So, their willingness may come to an end the cause of life of the partnership firm. The third and most complicated form of business organization is the corporation or a giant stock company. This is the form of business organization that requires huge amount of capital and complicated regulations to follow in order to set up the business organization. It is a distinct form of organization that have separate legal entity apart from its owners. The owners in this type of business organization are called as shareholders. So, a company enjoys separate legal entity apart from its shareholders. There is a separation. The life of shareholder has no bearing upon the life of the company. This another mean that the company enjoys status of citizen in a country although in this status the company cannot vote. The company has a common seal. It works as a signature of the company. A common seal is engraved form of symbols that are used to stamp in order to authenticate the documentation issued by the company. The company's operations are regulated under certain act of law. In Pakistan there is a company's act 2017 that are used to regulate the business of companies in Pakistan. The major advantage of a corporate form of organization is that it has unlimited life. This means in case of ownership transfer, in case of death of any shareholder the life of the company does not come to an end and it continues. Another major benefit of company is that in this form of business organization every shareholder has a limited liability. This means that liability of the shareholder is only limited up to the amount he has invested in the assets of the company. Ownership is easily transferable but shareholders can sell his share to other person in the company or in the market. Another major benefit is that the profit of the company are divisible in the form of dividend to the shareholders and remaining profit in the company are worked as reinvestment for the company. There is a separation of ownership from the manager and it works as agency relationship for the company. But there is a drawback as the company is a separate entity apart from the ownership. So the profits of the company are taxed as an individual citizen but when after taxation the company's profits are distributed among its shareholders as their income then these shareholders are liable to pay tax as their income. In this form of business organization it takes very complicated procedure to follow to dissolve the operations of the company. In corporate form of business there is a separation of management from the ownership. Generally a company comprises of shareholders, directors and corporate officers. Elect directors who appoint corporate officers to run day-to-day operations of the company. Corporate officers generally work for the best interest of the shareholders. In closely held companies generally all these three forms of workers are likely the same but in largely stock held companies there is no such case and one can easily observe three layers of in terms of shareholders, board of directors and the managers.