Partnership is best described as?

• A. A business organization owned by two or more persons who agree on a specific division of responsibilities and profits.
• B. A form of business organization owned by a single individual.
• C. A cooperative owned by members.
• D. A company recognized as a legal person.

Answer: (A)

Partnership is a form of business where two or more individuals share ownership, responsibilities, and profits according to an agreed arrangement. This shared ownership and profit split distinguishes it from other forms. A single individual owning and operating the business describes a sole proprietorship. A cooperative is owned by its members for their mutual benefit, not necessarily sharing profits in a partner-based agreement. A company recognized as a legal person describes a corporation, which is a separate legal entity with ownership represented by shares. So the description focusing on two or more people who agree on how to divide responsibilities and profits best captures what a partnership is.