The main difference among the balance sheets of the sole proprietorship, the partnership, and the corporation is found in the owner's equity section.

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In a sole proprietorship, the owner's equity section includes the owner's capital account. In a partnership, the owner's equity section includes each partner's capital account and the total ownership percentages. In a corporation, the owner's equity section includes shareholders' equity, which includes common stock and retained earnings. Therefore, the differences among the owner's equity section in these forms of business organization cause the main difference in their balance sheets.

The Main Difference Among the Balance Sheets of the Sole