Elena and several friends want to start a business. Each member of the group wants to actively participate in managing the business and share in any profits. Which of the following forms of business ownership would best satisfy the goals of Elena and her friends?
A) not-for-profit
B) limited partnership
C) corporation
D) cooperative

Question

Quizplus · Accepted Answer

A cooperative is a type of business ownership in which members actively participate in management and share in the profits. It is an ideal option for Elena and her friends as all of them want to be actively involved in the business's management and decision-making. Additionally, they all want to share in any profits that the business generates. A corporation is a separate legal entity, and its shareholders are not necessarily involved in the daily management of the business. A limited partnership might not provide every member with the opportunity to participate actively in the management of the business. A not-for-profit business is not designed to generate profits for its members but to achieve a social objective.

Elena and Several Friends Want to Start a Business