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The size and scope of the enterprise firm and its construction, administration, and possession, broadly analyzed in the principle of the agency Generally, a smaller enterprise is more flexible, whereas bigger businesses, or these with wider ownership or extra formal structures, will often tend to be organized as firms or (less typically) partnerships. In addition, a enterprise that needs to boost cash on a stock market or to be owned by a wide range of individuals will often be required to adopt a specific authorized form to do so.

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