Which type of organization involves two or more individuals running the business together?

A partnership is a type of business organization where two or more individuals come together to run a business in collaboration. In this arrangement, each partner contributes resources, shares responsibilities, and participates in the management of the business. This model allows for pooling of skills and resources, potentially leading to improved decision-making and greater capacity for growth compared to an individual operating alone.

Partnerships can vary in structure, including general partnerships where all partners participate equally in management and share liabilities, or limited partnerships involving one or more partners with limited liability while allowing others to manage the business. The relationships are usually formalized through a partnership agreement, detailing the roles, contributions, and profit-sharing arrangements among the partners.

Other types of organizations, such as sole traders or limited liability companies, involve different structures. A sole trader involves one individual running the business independently, while a limited liability company has a distinct legal status separate from its owners, limiting personal liability. In contrast, a cooperative emphasizes collective ownership by its members but does not necessarily require two or more individuals running it in the same manner as a partnership.