Which of the following is NOT a type of business ownership?

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

Answer: (D)

Understanding how a business is owned versus how a business operates helps distinguish legal structure from operating model. The ways a business can be owned include one person running it as a sole proprietorship, two or more people sharing ownership in a partnership, or a separate legal entity like a corporation owned by shareholders. A franchise, on the other hand, is a licensing arrangement where the franchisor lets another party operate a business under its brand, systems, and support. The franchisee may own their own business entity, but the defining feature is the use of the franchised brand and method, not a distinct ownership form. So franchising isn’t considered a primary type of business ownership in the same way as sole proprietorship, partnership, or corporation.