The chapter discusses different types of business organizations including private sector, public sector, and joint sector. Private sector includes sole proprietorships, partnerships, joint stock companies, and cooperatives. A public sector firm is owned and controlled by the government. The chapter also examines various theories of firm objectives, including profit maximization, sales revenue maximization, growth rate maximization, and behavioral theories. Additionally, it discusses the concepts of principal-agent problem and asymmetric information in organizational contexts.