Question

Franklin, John, Henry, and Harry have decided to pool their financial resources and business skills in order to open up and run a coffee shop. They will share any profits or losses that the business generates and will be personally responsible for making good on any debt that their business undertakes.Their business should be classified as a________

Answer 1

Partnership

Step-by-step explanation:

Partnership is the arrangement where two or more business partners agree to cooperate in order to advance their mutual interests. The partners in partnership may be businesses, individuals, interest-based organizations, governments, schools or combinations.

In the partnership business, all the partners share the liabilities and the profits equally,

The coffee shop that the guys Franklin, John, Henry, and Harry have decided to start is partnership because each member in the business is personally liable for any kind of the losses that business generates.