What is the form of co-ownership where there may be many owners but only one or two make decisions?

What is the form of co-ownership where there may be many owners but only one or two make decisions?

• A. A general partnership
• B. A limited partnership
• C. Joint tenancy
• D. Sole proprietorship

Answer: (B)

In a limited partnership, there are typically two types of partners: general partners and limited partners. The general partners manage the operations of the business and make decisions, while the limited partners contribute capital and share in profits but do not participate in day-to-day management. This structure allows for multiple owners; however, only the general partners are actively involved in decision-making, which aligns with the concept of having many owners but only one or two making decisions. The other options do not reflect this specific arrangement. A general partnership allows all partners to participate in management, joint tenancy is primarily related to property ownership where all parties have equal rights, and a sole proprietorship involves a single owner with full control over decision-making. Therefore, the structure of limited partnership clearly fits the description provided in the question.

In a limited partnership, there are typically two types of partners: general partners and limited partners. The general partners manage the operations of the business and make decisions, while the limited partners contribute capital and share in profits but do not participate in day-to-day management. This structure allows for multiple owners; however, only the general partners are actively involved in decision-making, which aligns with the concept of having many owners but only one or two making decisions.

The other options do not reflect this specific arrangement. A general partnership allows all partners to participate in management, joint tenancy is primarily related to property ownership where all parties have equal rights, and a sole proprietorship involves a single owner with full control over decision-making. Therefore, the structure of limited partnership clearly fits the description provided in the question.