What term describes two or more individuals sharing the responsibility and finances of a business?

The term that describes two or more individuals sharing the responsibility and finances of a business is a general partnership. In a general partnership, each partner actively participates in the management of the business and shares in its profits and losses according to a partnership agreement. This structure allows for collaborative decision-making and the pooling of resources, which can enhance the business's potential for success.

In a general partnership, all partners have equal responsibility for the debts and obligations of the business, making it distinct from other business entities where liability might be limited or ownership is centralized in one individual or corporation. This model emphasizes joint accountability, which is a fundamental aspect of the partnership dynamic.

A limited partnership involves both general partners and limited partners, where only the general partners take on the full liability for the business, while limited partners typically have restricted involvement in management and limited liability. A sole proprietorship is owned and run by a single individual, and a corporation is a separate legal entity that provides limited liability to its owners but is not characterized by shared responsibility among multiple individuals in the same way as a general partnership.