Which form of business is owned and operated by two or more co-owners?

• A. Sole Proprietorship
• B. Corporation
• C. LLC
• D. Partnership

Answer: (D)

Two or more people owning and running the business together describes a partnership. In a partnership, the owners (partners) share in the profits and losses and typically participate in day-to-day management, making decisions together. This setup is what distinguishes it from a sole proprietorship, which has a single owner; a corporation, which is owned by shareholders and managed by a board; and an LLC, which can have multiple owners but is structured to provide limited liability and may be managed by members or designated managers. The idea of joint ownership and shared operational control is the hallmark of a partnership, with general partnerships featuring active involvement by all partners (and shared liability), while limited partnerships allow some partners to be passive investors.