Which business structure allows for shared responsibility and liability among all owners?

The choice of a general partnership as the correct answer is based on its defining characteristics, particularly regarding responsibility and liability. In a general partnership, all owners (also called partners) share both the responsibilities and liabilities of the business. This means that each partner can be held personally liable for the debts and obligations of the business, which fosters a sense of shared risk and mutual accountability among the partners.

This structure contrasts with others, such as a private limited company, where the owners (shareholders) have limited liability, meaning they are only responsible for the company's debts up to the amount they invested. Similarly, in a limited liability partnership, liability is restricted for some or all partners, which again differs from a general partnership’s full liability model. A sole trader, on the other hand, involves a single individual who bears full responsibility and liability for the business, thus lacking the shared aspect present in a general partnership.

Therefore, the general partnership is specifically designed for shared responsibility and liability, making it the correct choice in this context.