As the sonic brand grew, troy smith formed a business relationship with charlie pappe. this form of business ownership was a

Partnership

A partnership is a from of business ownership who come together with mutual consent in order to manage the business and share its profits.

The terms and conditions of this agreement and the quantum of profit for each partner is clearly stated in a document called the partnership agreement.

All the partners who actively manage the business and share the profits are called General Partners. The general partners are jointly and severally liable for the debts incurred by the partnership.

The form of business ownership was a partnership.

Further Explanation:

Partnership:

Partnership refers to the formal agreement between two or more parties for carrying out the business activities and participates in the profit and loss sharing of the business. There are many types of partnerships. In partnership, the liabilities of the partners are unlimited. However, in the case of limited liability partnership, the liabilities of the partners are limited.  

Determine the form of business ownership:

In the given case, Troy formed a business relationship with Charlie Pappe. Earlier, the Sonic brand was managed and operated by Troy alone. Therefore, it was a sole proprietorship before the introduction of Charlie Pappe. After the introduction of Charlie Pappe, there are two members in the business ownership. The business form of two people is classified as a partnership.  

Thus, the form of business ownership was a partnership.

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Answer Details:

Grade: Middle school

Chapter: Partnership

Subject: Business studies  

Keywords: sonic, brand, grew, troy, smith, formed, business, relationship, Charlie, Pappe, form, business, ownership, unlimited partnership, company, two or more, members.

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