Which type of business entity is characterized by all co-owners sharing power and responsibilities?

The correct choice is general partnership, as this business entity is defined by the collaborative nature of its ownership structure. In a general partnership, all co-owners, known as partners, share equal control over management and decision-making processes. This means that each partner is actively involved in the day-to-day operations and has a say in the strategic direction of the business.

Moreover, partners in a general partnership typically share both the profits and the liabilities of the business, which further illustrates the degree of joint responsibility and collective authority. This equal division of power can lead to a more cohesive and collaborative business environment, as partners work together to achieve common goals.

In contrast, a sole proprietorship is owned and operated by one individual, who has full control but also bears sole responsibility for liabilities and decision-making. A limited partnership involves at least one general partner who manages the business and has unlimited liability, while other partners, who are limited partners, typically only contribute capital and have no say in management. A corporation is a distinct legal entity, separate from its owners (shareholders), and often features a hierarchical management structure rather than equal power among co-owners.