Which type of business ownership allows for shared liability among owners?

Partnerships are a type of business ownership where two or more individuals share ownership of a business. This structure allows for shared liability among the owners, meaning that each partner is personally responsible for the debts and obligations of the business, as well as its profits and losses. The liability is typically shared according to the partnership agreement, which outlines each partner's contributions, roles, and shares in profits.

Additionally, partnerships can facilitate a diverse range of skills and resources, as multiple individuals can contribute varying expertise and financial backing to the business. This collaborative environment can enhance decision-making and operational ease compared to sole ownership structures.

While corporations and Limited Liability Companies (LLCs) also involve multiple owners, they primarily limit personal liability for business debts to the extent of the owners' investment, ensuring that personal assets of the shareholders or members are generally protected. Sole proprietorship, on the other hand, does not share liability, as the single owner is wholly responsible for all business liabilities.