What form of business organization is owned by two or more people who contribute capital and share profits?

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

Answer: (B)

A partnership is a business arrangement where two or more individuals contribute capital and agree to share the profits and losses of the enterprise. This setup relies on collaborative ownership and joint decision-making, with profits distributed according to the partnership agreement.

Sole proprietorship is owned by a single person, so it doesn’t fit the “two or more” owners requirement. A corporation is owned by shareholders, a separate legal entity from the owners, and profits are distributed as dividends rather than directly shared as part of a partnership agreement. A cooperative is owned by its members who use its services and share benefits or profits among those members, but the defining idea in the question is multiple owners pooling capital and sharing profits, which points to a partnership.