Question

Stewed Tomatoes was an "all-girl power-pop trio." Its three members realized that many musicians feel stifled when making music in a sterile studio environment while the clock ticked away expensive hours, so the three girl band members created Materville Studios, a multimedia production house and recording studio in downtown Chicago. They share work responsibilities and profits equally. Materville Studios is a(n):

A. S corporation
B. Cooperative
C. Sole proprietorship
D. Partnership
E. Double proprietorship

Answer 1

Based on the shared responsibilities and profits, Materville Studios is a Partnership, which is a business structure operated by two or more individuals.

Step-by-step explanation:

If the three members of Stewed Tomatoes share work responsibilities and profits equally, their multimedia production house and recording studio, Materville Studios, is most likely a Partnership. A partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed. This structure allows the profits to be shared among the partners and does not require the formalities of an S corporation or a Cooperative, such as stock distribution or formal membership processes. Furthermore, unlike a Sole Proprietorship, which is owned and run by one person, a Partnership involves multiple individuals. There is no legal business structure known as a Double Proprietorship.

Answer 2

Letter D is correct. Partnership.

Step-by-step explanation:

A partnership can be defined as a formal arrangement between two or more individuals whose main objectives are to share the responsibilities of managing and controlling a business and to share profits equally.

The partnership agreement can occur in any enterprise, such as between companies, governments, individuals, etc.

It is important that there is a written partnership contract that determines what the responsibilities, rights and duties of each party are, and that all operations and activities are clearly defined, so that losses, profits and management are shared by all members of the partnership in a well-defined contract.