What type of business is owned by two or more individuals?

A business that is owned by two or more individuals is known as a partnership. In this type of business structure, all partners share management responsibilities and profits according to the terms laid out in their partnership agreement. This allows the business to benefit from the skills, resources, and investments of multiple individuals, enhancing its potential for success.

Partnerships can take various forms, such as general partnerships where all partners are actively involved in the business, or limited partnerships where some partners contribute capital but do not take part in day-to-day operations. This shared ownership often leads to collaborative decision-making and greater capital at the outset of the business.

Other types of business structures differ significantly in terms of ownership. A corporation is an entity owned by shareholders and is typically more complex and formalized, allowing for limited liability. A sole proprietorship, on the other hand, is owned by a single individual who has complete control over the business but also bears all the risks and liabilities. Franchises involve a business model where an individual (the franchisee) operates under the branding and business model of an established brand (the franchisor), often requiring a significant investment and adherence to specific operational guidelines.