Which of the following is the correct definition for a partnership?
A) An association of two or more persons with one or more general partners and one or more limited partners
B) A legal entity ordinarily consisting of an association of numerous individuals
C) An association of two or more persons to carry on as co-tenants in business
D) An association of two or more persons to carry on as co-owners a business for profit

Question

Quizplus · Accepted Answer

A partnership is an association of two or more persons who come together to carry on as co-owners a business for profit. Option A refers specifically to a limited partnership, which is a type of partnership that has both general partners (who manage the business and are fully liable for its debts) and limited partners (who are passive investors and have limited liability). Option B refers to a corporation, not a partnership. Option C is partly correct, but does not include the requirement that the partnership is for profit.

Which of the Following Is the Correct Definition for a Partnership