Which type of business structure involves two or more partners who share profits and responsibilities?

The correct answer identifies a partnership, which is a type of business structure that involves two or more individuals who come together to manage and operate a business. In a partnership, these partners share the profits, as well as the responsibilities and liabilities associated with running the business. This collaborative approach enables partners to pool resources, skills, and capital, potentially leading to greater success than if they were operating individually.

Partnerships are characterized by the mutual consent of the partners to work together and often include formal agreements outlining the terms of their collaboration, such as profit-sharing ratios and decision-making responsibilities. This structure is particularly advantageous for small to medium-sized enterprises where combined efforts can enhance productivity and innovation.

In contrast, a joint venture typically refers to a temporary partnership formed for a specific project, while a sole proprietorship is owned and operated by a single individual, thus not involving multiple partners. A corporation, on the other hand, is a legal entity separate from its owners, providing limited liability and a more complex structure compared to partnerships.