What is the relationship that exists between at least two and not more than 20 persons carrying on a business, with a view to making a profit, where the business is jointly owned by all the partners?

What is the relationship that exists between at least two and not more than 20 persons carrying on a business, with a view to making a profit, where the business is jointly owned by all the partners?

• A. Company
• B. Sole trader
• C. A partnership
• D. Cooperative

Answer: (C)

Partnerships describe a form of business ownership where two or more people agree to run a business together with the aim of making a profit, and the business is jointly owned by all the partners. The key features here are that there must be at least two people, not more than twenty in this context, who share ownership and responsibility for the enterprise, and profits (and losses) are shared according to an agreed arrangement. This matches the scenario described: a group of people working together to operate a business with the goal of making a profit and jointly owning it. It differs from a company, which is a separate legal entity owned by shareholders; from a sole trader, where just one person runs the business; and from a cooperative, which is owned and run by its members for their mutual benefit rather than simply forming a business with partners who share profits and ownership.

Partnerships describe a form of business ownership where two or more people agree to run a business together with the aim of making a profit, and the business is jointly owned by all the partners. The key features here are that there must be at least two people, not more than twenty in this context, who share ownership and responsibility for the enterprise, and profits (and losses) are shared according to an agreed arrangement. This matches the scenario described: a group of people working together to operate a business with the goal of making a profit and jointly owning it. It differs from a company, which is a separate legal entity owned by shareholders; from a sole trader, where just one person runs the business; and from a cooperative, which is owned and run by its members for their mutual benefit rather than simply forming a business with partners who share profits and ownership.