What is the term for an association of two or more persons who operate a business as co-owners by legal agreement?

The term that describes an association of two or more individuals who operate a business as co-owners by a legal agreement is a partnership. Partnerships involve shared ownership and management responsibilities, allowing partners to contribute various resources, skills, and expertise to the business. This structure facilitates collaboration in decision-making and profit-sharing, leading to a potentially more robust business model.

In a partnership, a formal agreement outlines the rights, responsibilities, and liabilities of each partner, ensuring clarity in the management and ownership structure. This legal framework distinguishes partnerships from sole proprietorships, which involve an individual business owner, and corporations, which are separate legal entities owned by shareholders. Franchising, on the other hand, involves a business model where an individual (franchisee) is granted the right to operate a business under the brand and operational model of another company (franchisor), but does not establish co-ownership among individuals.