A business owned by two or more co-owners who share profits and are legally responsible for the business's debts.

• A. Sole Partnership
• B. Partnership
• C. Corporation
• D. Franchise

Answer: (B)

A partnership is a business owned by two or more people who share profits and are legally responsible for the debts of the business. This fits the description because it involves multiple owners who divide the earnings and also share liability for any obligations the business incurs.

This differs from a sole proprietorship, which has a single owner; a corporation, which is a separate legal entity with owners (shareholders) typically not personally liable for business debts; and a franchise, which is a business model rather than a specific ownership form. In a general partnership, partners usually have personal liability for business debts and profits are shared, aligning with the scenario described.