Blake, Madison and Sean started selling computer software on college campuses under the name Student Software Company. Each person contributed $1,500toward start-up costs and agreed on dividing costs and profits equally. The legal structure for the company can best be described as:
A) a proprietorship.
B) a partnership.
C) a trade alliance.
D) a corporation.
E) none of these.

Question

Quizplus · Accepted Answer

The legal structure for the company is a partnership as each person contributed equally to start-up costs and agreed to divide costs and profits equally. A proprietorship refers to a business owned by one person, a trade alliance is a group of companies working together for a common goal, and a corporation is a separate legal entity owned by shareholders.

Blake, Madison and Sean Started Selling Computer Software on College