2. Forms of business organizations Businesses can be classified into the following forms: a proprietorship, a partnership, a corporation, and an income trust. Different forms of businesses have different characteristics. Which of the following characteristics would apply to a partnership? Taxed at individual level Legal arrangement between two or more people Income is allocated according to the legal agreement Created by provincial and federal laws and is its own entity separate from its owners Can easily raise large amounts of capital Subject to unlimited liability classify it as a proprietorship, a partnership, a corporation, an income trust, or a limited liability partnership (LLP)