What is a partnership defined as?

A partnership is defined as a business arrangement where two or more individuals come together to operate a business for mutual benefit. The correct option highlights that a partnership typically consists of 2 to 20 people who share the responsibilities, profits, and liabilities of the business. Each partner usually contributes something to the enterprise, whether it be capital, skills, or labor, and they work collaboratively towards common goals.

The significance of this definition lies in the collaborative nature of partnerships, which fosters a shared commitment to the success of the business. It also makes clear that partnerships are generally limited to a specific number of individuals to maintain a manageable structure, unlike larger corporations or government agencies. In contrast to other business types, such as sole proprietorships or corporations, a partnership emphasizes collaboration and shared ownership among the partners.