Stewed Tomatoes was an "all-girl power-pop trio." Its three members realized that many musicians feel stifled when making music in a sterile studio environment while the clock ticked away expensive hours, so the three girl band members created Materville Studios, a multimedia production house and recording studio in downtown Chicago. They share work responsibilities and profits equally. Materville Studios is a (n):

A. S corporation

B. Cooperative

C. Sole proprietorship

D. Partnership

E. Double proprietorship

Letter D is correct. Partnership.

Explanation:

A partnership can be defined as a formal arrangement between two or more individuals whose main objectives are to share the responsibilities of managing and controlling a business and to share profits equally.

The partnership agreement can occur in any enterprise, such as between companies, governments, individuals, etc.

It is important that there is a written partnership contract that determines what the responsibilities, rights and duties of each party are, and that all operations and activities are clearly defined, so that losses, profits and management are shared by all members of the partnership in a well-defined contract.