A firm owned and managed by a family is an example of ______?

A. joint stock exchange
B. cooperative society
C. sole proprietorship
D. partnership

Correct Answer:

Option D – partnership

Explanation

A partnership may be defined as a type of business organization in which two to twenty persons agree legally to setup and manage a business outfit with the sole aim of making profit. The people involved in partnership agreement are called partners and they share the profit, losses and risk of
the business. A family owned business is any business in which two or more family members are involved and the majority of ownership or control lies within a family.