What is a legal agreement between two or more individuals to share the responsibilities and profits of a business called?

A legal agreement between two or more individuals to share the responsibilities and profits of a business is referred to as a partnership. In a partnership, the involved parties, known as partners, collaborate to operate a business, share its profits, and manage its operations jointly. This arrangement allows partners to contribute different skills, resources, and capital, enhancing the potential for success.

In the context of the definite structure of a partnership, each partner typically has defined roles and responsibilities, as outlined in a partnership agreement. This agreement serves to clarify the terms of the partnership, including profit-sharing agreements, management duties, and the process for adding or removing partners. Partnerships can take different forms, such as general partnerships, where all partners share responsibility and liability, and limited partnerships, where some partners have limited liability.

The other options represent different business structures or arrangements, which do not fit the description of a partnership as accurately. A corporation is a separate legal entity that limits liability for its owners but does not inherently involve sharing responsibilities and profits in the same way a partnership does. A sole proprietorship involves only one individual who owns and operates the business, while a joint venture typically refers to a temporary partnership formed for a specific project rather than a continuous business operation where responsibilities and profits