Blake, Madison and Sean started selling computer software on college campuses under the name Student Software Company. Each person contributed $1500 toward 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) partnership.
C) trade alliance.
D) corporation.
E) None of these.

Question

Quizplus · Accepted Answer

The given scenario shows that the business is started jointly by three individuals who have agreed to divide costs and profits equally. This indicates that the legal structure of the business is a partnership, where two or more individuals jointly own and operate the business with shared profits and liabilities, as per the terms of the partnership agreement. The other options of proprietorship, corporation, or trade alliance do not fit the described scenario.

Blake, Madison and Sean Started Selling Computer Software on College