What type of business entity allows all co-owners to actively share power, responsibilities, and profits?

A general partnership is a type of business entity where all co-owners, known as partners, actively share power, responsibilities, and profits equally among themselves. In this structure, each partner has the authority to make decisions on behalf of the business and is also equally liable for the debts and obligations that the partnership incurs. This collaborative approach fosters a collective management style and allows for shared financial gains, making it an appealing choice for individuals who want to work closely together and leverage their combined skills and resources.

The other business entity types present distinct characteristics that differentiate them from a general partnership. A limited liability company (LLC) offers members limited liability protection while allowing for flexible management structures, but it typically does not require all members to have equal responsibility or power. A sole proprietorship is owned and operated by a single individual, thus eliminating any opportunity for shared ownership or profits. Lastly, a joint venture is a temporary partnership formed for a specific project or business activity, meaning it does not provide the same ongoing collaborative operational framework as a general partnership.