What type of business involves two or more individuals combining their assets and skills?

The type of business that involves two or more individuals combining their assets and skills is a partnership. In a partnership, the individuals, known as partners, share the responsibilities of managing the business as well as any profits or losses that arise from its operations. This structure allows partners to leverage their different skills and resources, fostering collaboration and efficiency.

Partnerships are typically formed through a formal agreement that outlines the roles, contributions, and profit-sharing arrangements among the partners. This structure can provide various benefits, such as shared expertise and reduced workload compared to a sole proprietorship, where only one individual manages the entire business. In contrast, corporations and LLCs involve a more complex structure with legal distinctions between the owners and the business, often suitable for larger operations or when liability protection is a priority.