What type of business structure involves two or more people sharing ownership?

A partnership is a type of business structure that is characterized by two or more individuals sharing ownership and responsibilities for managing the business. In this arrangement, each partner contributes resources, which can include capital, skills, or labor, and they also share in the profits and losses of the business according to the terms agreed upon in their partnership agreement.

This structure has advantages such as shared decision-making and increased resource pooling, which can lead to greater financial strength and diversification of skills and ideas. Partnerships can also allow for more straightforward tax implications, as profits are typically passed through to the partners and taxed as personal income, rather than at the corporate level.

In contrast, a corporation is a more complex business structure, providing limited liability protection to its owners and requiring formalities like a board of directors and bylaws. A sole proprietorship is solely owned and operated by one individual, leaving no room for shared ownership. A franchise represents a different model, where one party (the franchisor) grants another party (the franchisee) the right to operate a business using the franchisor's brand and operating methods, rather than involving shared ownership among multiple parties.

Overall, the nature of a partnership inherently revolves around shared ownership, making it a distinct and collaborative business structure.