What defines a partnership?

A partnership is specifically defined as a business owned and operated by two or more individuals. This structure allows the partners to share profits, responsibilities, and liabilities in the business. Each partner typically contributes to the operations, whether that be in terms of capital, labor, or expertise, and they work collaboratively toward common business goals. This arrangement is formalized through a partnership agreement that outlines the roles, responsibilities, and distribution of profits among the partners.

The other options do not reflect the definition of a partnership. For instance, a business operated by one individual describes a sole proprietorship, which is distinctly different from a partnership since it involves a single owner. A non-profit business organization focuses on pursuing social or charitable goals instead of generating profit and often has different regulatory and operational structures in place. A publicly traded business, on the other hand, is one that has shares available for sale to the general public on stock exchanges, typically indicating a corporation rather than a partnership. Thus, the defining characteristic of a partnership is the involvement and collaboration of two or more individuals in the ownership and operation of the business.