Which term describes a business structure in which the owners are two or more individuals carrying on a business with a view to making a profit, and the business is jointly owned by the partners?

Which term describes a business structure in which the owners are two or more individuals carrying on a business with a view to making a profit, and the business is jointly owned by the partners?

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

Answer: (D)

Two or more individuals coming together to operate a business for profit and sharing ownership describes a partnership. In a partnership, the owners collaborate to run the business and share both profits and losses according to an agreed arrangement. This structure is defined by joint ownership and a shared goal of making a profit, with the partners often involved in day-to-day management. It differs from a company, which is a separate legal entity owned by shareholders; profits belong to the shareholders and the company has its own legal personality. It differs from a sole trader, where there is only one owner who bears all profits and risks. It also differs from a cooperative, which is owned by members who use its services and typically distributes benefits to those members rather than simply sharing profits among business partners.

Two or more individuals coming together to operate a business for profit and sharing ownership describes a partnership. In a partnership, the owners collaborate to run the business and share both profits and losses according to an agreed arrangement. This structure is defined by joint ownership and a shared goal of making a profit, with the partners often involved in day-to-day management.

It differs from a company, which is a separate legal entity owned by shareholders; profits belong to the shareholders and the company has its own legal personality. It differs from a sole trader, where there is only one owner who bears all profits and risks. It also differs from a cooperative, which is owned by members who use its services and typically distributes benefits to those members rather than simply sharing profits among business partners.