The organization of a productive industry may take any one of three different forms: the single enterpriser, the partnership, the corporation. Each possesses advantages as well as disadvantages. Usually one of the three is better adapted than either of the others to this or to that industry, depending on its size, on the nature of its product, or on the character of its operations. We cannot say, therefore, which form of organization is best adapted to any particular industry until we know something about its character. We can, however, without special reference to particular industries, point out the advantages and disadvantages of each form of organization and draw general conclusions as to their adaptability.

The single-enterprise form of industry predominates in most lines of production. It has almost a complete monopoly in farming, it is the form most often met in retailing, and it still holds an important place in manufactures. Wherever small capital is sufficient and close supervision is required, we may expect to find a single enterpriser, who assumes all the risks of the business and enjoys all of its profits. Obviously, he controls his business alone and without interference. He can decide on policies and carry them out without consulting others. Thus, we can see why farming, retailing, and even manufacturing are adapted to the single-enterprise form of organization. Few farmers would care to share the cultivation of a piece of land with others. Neither does the druggist, the grocer, or the confectioner ordinarily feel the need of dividing responsibility or profits with some one else.