Which statement about a partnership is true?

A partnership is characterized by the fact that it is owned by two or more individuals who come together with the goal of making a profit. This fundamental structure distinguishes partnerships from other types of business entities, as they allow for shared decision-making and responsibilities among the partners. Each partner typically contributes to the business, either financially or through labor, and shares in the profits and losses according to the terms set in their partnership agreement.

This ownership structure is crucial because it informs how decisions are made, how profits are distributed, and how liability is handled. While partnerships are indeed a common form of business organization, the defining feature remains the collective ownership aimed at generating profit. This collaborative effort helps foster a sense of shared purpose and responsibility among partners, which can be beneficial for the overall success of the business.