What is the definition of a partnership?

A partnership is defined as an arrangement in which two or more individuals come together to conduct trade or business. This structure allows the partners to share profits, losses, and responsibilities associated with running the business. Partnerships can take various forms, including general partnerships, limited partnerships, and limited liability partnerships, each with its own legal implications and levels of liability for the partners involved.

The essence of a partnership lies in its collaborative nature, where multiple parties contribute resources, skills, and capital, fostering a shared approach to achieving business objectives. This contrasts distinctly with the other options: a single owner refers to sole proprietorships, a corporation involves shareholders with limited liability, and a non-profit organization focuses on serving a public or social benefit rather than conducting business for profit. Each of these alternatives creates different legal frameworks and operational dynamics, highlighting that option B precisely encapsulates the definition of a partnership in a business context.