Emma, Heidi, and Hilda have opened a new cafe. Each of them have contributed $1,500 toward start-up costs and have agreed on dividing costs and profits equally. The legal structure for the company can best be described as a:

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The fact that Emma, Heidi, and Hilda have divided costs and profits equally indicates that they have formed a partnership, where each partner contributes to the business and shares in the financial rewards and risks. A proprietorship would involve a single owner, while a corporation and benefit corporation are more complex legal structures involving shareholders and different levels of liability. A trade alliance is a group of businesses that work together to promote their common interests, but do not necessarily share ownership.

Emma, Heidi, and Hilda Have Opened a New Cafe