What defines a general partnership?

A general partnership is fundamentally defined as an association of two or more individuals engaged in a business for profit. Each partner contributes to the business, sharing in its management, profits, and liabilities. This structure allows individuals to pool resources and collaborate in pursuing business opportunities while also exposing them to joint liability for debts and obligations incurred by the partnership.

This definition highlights the collaborative nature of partnerships, distinguishing them from sole proprietorships where an individual operates independently. It also sets partnerships apart from entities like limited liability companies or corporations, where liability is limited to the extent of individual investment, reducing personal exposure to business debts. Furthermore, a general partnership is not comparable to a trust, as a trust is a legal arrangement typically involving the management of assets for beneficiaries, often established by a deceased individual.

In summary, C captures the essence of a general partnership by emphasizing the collective effort of individuals working together in a shared business context.