A business formation with a minimum of two and maximum of twenty persons is called

Step 1: Analyze the question The question asks which type of business has a minimum of 2 and a maximum of 20 members.

Step 2: Explain the concept In Nigeria, the Companies and Allied Matters Act (CAMA) and general business law set membership limits for different business types:

• One man business (sole proprietorship): owned by only 1 person.
• Partnership: 2 to 20 persons (except for certain professional partnerships such as law or accounting firms, which may exceed 20).
• Cooperative society: usually a minimum of 10 members, with no fixed upper limit.
• Joint stock company: a private company needs 2 to 50 members, while a public company needs at least 2 members with no upper limit.
• Public corporation: owned and set up by the government, so membership limits do not apply.

Step 3: Solve

• A is wrong because cooperatives usually need at least 10 members and have no maximum.
• B is wrong because joint stock companies can have far more than 20 members.
• C is wrong because it has only one owner.
• D fits: a partnership has a minimum of 2 and a maximum of 20 persons.
• E is wrong because it is government-owned.

Step 4: Answer The correct option is D. partnership.

Tip: Remember "Partnership = 2 to 20". Think of "two to twenty, partners aplenty." Also recall that a private company is 2 to 50, so don't mix up the two numbers in the exam.