Which business structure shares profits among stockholders?

The correct choice highlights the defining characteristic of a corporation, which is the division of profits among its shareholders. In a corporation, individuals or entities buy shares of the company, which makes them stockholders. These stockholders have a claim to a portion of the profits generated by the corporation, usually distributed in the form of dividends. This structure allows corporations to raise funds for growth by selling shares and provides an incentive for investors to invest in the company, as they can benefit financially from its success.

In contrast, a sole proprietorship typically does not share profits in this manner, as the business is owned and operated by a single individual who keeps all profits. In a partnership, profits are shared among a small group of partners based on their agreement, but it is not done through stock shares. A cooperative is a different structure where profits are distributed among members who use the co-op's services, focusing more on shared benefits rather than traditional stockholder profits.