What term describes an association of individuals united for a common purpose and legally allowed to use a common name?

The term that describes an association of individuals united for a common purpose and legally permitted to use a common name is a corporation. A corporation is a legal entity that is separate from its owners, meaning it can own property, enter contracts, and be liable for its actions independently of its shareholders. This structure allows for the collective investment and management of business activities under a recognized name, which provides both credibility and legal protections to the individuals involved.

In terms of organizational structure, a corporation can be formed by one or more individuals who contribute capital for a shared objective, such as conducting business or providing services. The distinction of being a legal entity also facilitates easier transfer of ownership through the buying and selling of shares.

While partnerships and sole proprietorships involve a group of people working towards a common goal, they do not carry the same legal recognition or protections as a corporation. An association generally refers to a group of individuals who come together for a specific purpose but lacks the legal status and protections of a corporation. Thus, the nature of a corporation as a legally recognized entity makes it the correct term for this question.