A business owned by two people.
Partnership
A business owned by two people is commonly called a partnership. In this type of business structure, each partner contributes to the business, both financially and/or with skills and expertise, and shares in the profits and losses generated by the company.
Partnerships can be formed with a partnership agreement, which outlines the roles and responsibilities of each partner, the percentage of ownership and profit sharing, as well as the decision-making process for the business.
Some advantages of a partnership include shared workload, diverse skillset, and the ability to combine resources to fund the business. However, it is essential to note that partnerships also entail risks. Partners are jointly and severally liable for the company’s debts and legal obligations, which means that each partner can be held responsible for the entire debt of the partnership. Additionally, disagreements between partners can arise and can chip away at the integrity of the partnership.
Therefore, it is important for business partners to have clear communication and a solid agreement in place to ensure the success of the partnership.
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