Which form of business is owned by two or more persons with a division of responsibilities and profits?

• A. Partnership
• B. Sole proprietorship
• C. Cooperative
• D. Corporation

Answer: (A)

Two or more people owning a business with shared responsibilities and profits fits a partnership. In a partnership, partners contribute effort, skills, or capital and divide management duties according to an agreed plan. They also share profits (and losses) based on the partnership terms, making day-to-day oversight and earnings a joint effort. This contrasts with other forms: a sole proprietorship has a single owner who handles everything and keeps all profits; a corporation is owned by shareholders and managed by a board, with profits typically distributed as dividends; a cooperative is owned by members who use the business and share profits and control democratically. The described setup is most characteristic of a partnership because ownership, responsibility, and profit-sharing are directly connected among two or more people.