In which type of business ownership are shares of stock sold to raise money?

The correct answer is a corporation because this type of business structure is specifically designed to sell shares of stock to raise capital. When individuals buy shares, they are essentially purchasing a small ownership stake in the company. This process allows corporations to generate significant funds to support business operations, expansion, and innovation. The benefits of selling shares include access to a wider pool of investment capital, which can be crucial for growth.

In a corporation, the ownership is separate from the management, meaning shareholders (owners) can buy and sell shares without directly influencing the day-to-day operations of the business. This structure also provides limited liability protection to shareholders, meaning they are not personally responsible for corporate debts beyond their investment in shares.

Other business ownership types such as sole proprietorships and partnerships do not involve selling shares to raise money, as they are typically funded through personal investment or loans. A cooperative is owned and operated by a group of individuals for their mutual benefit, and while it may involve some form of equity, it does not function like a corporation in terms of trading shares publicly. Therefore, the structure of a corporation specifically aligns with the practice of raising funds through shares of stock.