Question

Mike and Steve graduate from law school together and open a law practice in Michigan. They are co-owners of the business, share business profits and have joint control over its operation. Given only these facts, the business organization of their law practice is a:________
a) a partnership
b) a joint venture
c) a sole proprietorship for Steve and a sole proprietorship for Mike, exclusively
d) a limited liability corporation

Answer 1

Answer:

a) a partnership

Explanation:

-A partnership  is when two or more parties share a business operation and its profits.

-A joint venture  is when two or more parties make an agreement to share their resources to be able to reach a specific goal.

-A sole proprietorship is when one person owns a business, takes all the profits and has an unlimited responsability.

-A limited liability corporation is a business created by two or more parties in which their liability is limited to the amount invested.

According to this, the answer is that given only these facts, the business organization of their law practice is a partnership because the business was created by two parties that have control over the operation and share the profits.