Separation of ownership from control is more pronounced in a

Step 1: Analyze the question The question asks which type of business organization has the clearest split between the people who own the business and the people who run it.

Step 2: Explain the concept

• Ownership belongs to those who put in the capital (shareholders, partners, members).
• Control (management) is the day-to-day running of the business and decision-making.

In a small business, the owner often manages the business personally. In a large business with many owners, it becomes impractical for everyone to manage, so professional managers are hired.

Step 3: Examine each option

• A. Partnership: Partners usually both own and manage the business. Ownership and control are mostly combined.
• B. Joint-stock company: Thousands of shareholders may own the company, but they elect a Board of Directors, who appoint managers to run it. Shareholders rarely take part in daily management, so ownership is clearly separated from control.
• C. Sole proprietorship: One person owns, manages, and controls everything. There is no separation at all.
• D. Consumer co-operative society: Members own the society, and they elect a management committee from among themselves. Members still participate democratically (one member, one vote), so the separation is less pronounced than in a joint-stock company.

Step 4: Answer The separation of ownership from control is most pronounced in a joint-stock company, which is option B.

Step 5: Exam tip Remember: "Shareholders own, directors control." Whenever you see "separation of ownership from control" in Economics or Commerce, think of limited liability companies (public or private joint-stock companies). The opposite, where owner and manager are the same person, is the sole proprietorship.