What type of business ownership is a partnership?

A partnership is defined by shared ownership between two or more individuals. In this form of business ownership, each partner contributes to the business, whether through capital, labor, or expertise, and they share in the profits and losses according to the terms of their partnership agreement. This collaborative structure allows partners to leverage their combined skills and resources, fostering a business environment where decision-making is often more communal than in sole proprietorships.

The focus in a partnership is on the joint efforts and shared responsibilities, differentiating it from sole proprietorship, which involves a single owner. Additionally, it differs from corporate structures where ownership is represented by shares held by shareholders, or from government ownership which is not applicable in the context of business partnerships. Thus, the essence of a partnership lies in its collaborative nature, making shared ownership the defining characteristic.