Final answer:
The legal form of business ownership where the owners share everything equally is known as a partnership. The form that provides limited personal liability for the company's debts and actions is called a limited liability company (LLC) or a corporation.
Step-by-step explanation:
When it comes to setting up a business, there are various legal forms of ownership one can choose from. A sole proprietorship involves just one person who owns and runs the business, enjoying all the profits but also bearing unlimited personal liability. In contrast, a partnership is a structure where the business is owned and operated by two or more individuals who share profits, losses, and management responsibilities. A corporation is a legal entity that is separate from its owners and offers limited liability protection, but it often involves more regulatory requirements and taxation.
Understanding the legal form of business ownership in which owners have limited personal accountability for the company's debts and dealings is essential. The correct answer to the student's question is that the legal form of business ownership where the owners share everything equally is typically called a partnership, while the form that provides limited personal liability is known as a limited liability company (LLC) or a corporation.