What is a partnership?

A partnership is defined as an association of two or more individuals who collectively own and manage a business. This structure allows partners to share the responsibilities, profits, and losses of the business, creating a synergistic environment where multiple parties can contribute their resources, skills, and expertise. In legal terms, partners in a partnership are co-owners, which means they have shared authority and obligation concerning business operations.

This collaborative approach can provide various advantages, such as the pooling of skills and financial resources, which can enhance the business's growth potential. The partnership agreement typically outlines each partner's contributions, responsibilities, and how profits and losses will be distributed among them.

The other options represent different business structures. A business owned by one individual refers to a sole proprietorship, which contrasts with the essence of a partnership. A corporation is a distinct legal entity that is separate from its owners, providing limited liability but requiring a different governance structure. A trust involved in holding real estate assets does not necessarily imply a partnership either, as trusts have their own legal framework and purposes, often focusing on asset management rather than co-ownership in a business context.