American Massage Therapy Association (AMTA) Practice Test

What is the term for a business arrangement between two or more massage therapists as equal owners?

1. Sole proprietorship

2. Corporation

3. Independent contract

4. Partnership

The correct answer is: Partnership

The concept referred to in the question is best defined as a partnership, where two or more individuals collaborate as equal owners in a business. In a partnership, the individuals share responsibilities, profits, and liabilities associated with the practice. This structure allows for joint decision-making and the pooling of resources, making it a suitable option for massage therapists seeking to leverage their skills and enhance their business presence collectively. A sole proprietorship, on the other hand, is a business owned by a single individual, which would not apply here. A corporation is a more complex legal structure that involves distinct legal status and is typically used for larger or more formal business operations, involving shareholders and formal governance. Meanwhile, an independent contractor refers to an individual who provides services under their own business name but does not collaborate as an equal owner with others. Therefore, the correct choice reflects the collaborative nature of the business arrangement between the therapists, emphasizing their equal partnership.