Which form describes 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. Franchise
• C. Partnership
• D. Corporation

Answer: (C)

A partnership describes a business owned by two or more people who share profits and are personally liable for the business’s debts. In this setup, partners pool resources, make decisions together, and split any earnings. Because they share ownership and control, they also share legal responsibility for debts, meaning personal assets can be at risk to cover obligations (in a general partnership). This differs from a sole proprietorship, which has one owner; a corporation, which is a separate legal entity with limited liability for its owners; and a franchise, which is a licensing arrangement rather than a shared ownership structure.