Which description matches a Partnership?

Which description matches a Partnership?

• A. A business owned and operated by 2-20 people
• B. A business owned and operated by one person
• C. A business that offers shares to the public
• D. A government-owned enterprise

Answer: (A)

Shared ownership and control by two or more people defines a partnership. In this arrangement, two or more partners run the business and share profits, losses, and responsibilities according to an agreement. This contrasts with a sole trader, which is owned by one person; a company that issues shares to the public and has a separate legal entity; and a government-owned enterprise, which is owned by the government. Partnerships rely on collaboration and shared decision-making, making the two-or-more owners description the best match.

Shared ownership and control by two or more people defines a partnership. In this arrangement, two or more partners run the business and share profits, losses, and responsibilities according to an agreement. This contrasts with a sole trader, which is owned by one person; a company that issues shares to the public and has a separate legal entity; and a government-owned enterprise, which is owned by the government. Partnerships rely on collaboration and shared decision-making, making the two-or-more owners description the best match.