Which form allows owners to contribute no capital but still participate in management and share profits?

• A. Sole Proprietorship
• B. Partnership
• C. Corporation
• D. LLC

Answer: (B)

In a partnership, two or more owners share control of the business and the profits according to a agreed plan. A key flexibility here is that partners can contribute different things to the venture—for example, one partner might put in cash while another contributes time, skills, or specialized know-how. Because ownership and rights come from the partnership agreement, someone can join with little or no capital and still participate in managing the business and sharing the profits. This sweat-equity arrangement is less compatible with the other forms: a sole proprietorship has only one owner who runs everything; a corporation requires owning stock (capital) and management is typically separate from ownership; an LLC can be managed by members, but contributing no capital is not a defining or common feature.