Final answer:
A firm with two or more owners sharing decision-making and profits is referred to as a partnership. Partners share risks and responsibilities and may possess complementary skills for managing the business.
Step-by-step explanation:
A firm that has two or more owners who share decision-making power as well as profits is called a partnership. In a general partnership, the partners share responsibility and risk, possibly bringing complementary skills to assist in the management of the business. This type of business organization allows for shared decision-making practices among the stakeholders. On the other hand, a private company can be owned by an individual, known as a sole proprietorship, or by a group, which is a partnership. When a company sells stock to financial investors, it becomes a public company with shareholders electing a board of directors to oversee management.