Name the four basic types of business organizations popular in the music industry. View keyboard shortcutsEditViewInsertFormatToolsTable12ptParagraph

The four basic types of business organizations popular in the music industry are:

1. Sole Proprietorship: This is the simplest form of business organization. It is owned and run by one individual with no distinction between the business and the owner. Many musicians and artists start their careers as sole proprietors.

2. Partnership: This is a business organization where two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business. Examples in the music industry could include a band or a music production team.

3. Corporation: This is a complex form of business organization. It is a legal entity separate from its owners. This means that the corporation itself, not the shareholders that own it, is held legally liable for the actions and debts the business incurs. Major record labels are typically corporations.

4. Limited Liability Company (LLC): This is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. Many independent record labels or music production companies may choose this structure.