Question

In college, you and fifteen of your friends pool your resources and buy a house. You create a corporation, then each friend buys shares in the corporation, and then you all sign lease agreements for different rooms in the house. You can’t take out a loan based on the room that you own, but the corporation can borrow money on a blanket mortgage, in which case you would be jointly and severally liable on the loan. This type of co-ownership is best described as a ________.

Answer 1

Answer:A cooperative business

Step-by-step explanation:

A cooperative business is a business owned jointly by individuals who are responsible for its products and service use. The owners has an aim of gaining certainly advantages such as enhancing the bargaining power of its members

It also help the business operates at a lower cost whilst opening up new opportunities.