Final answer:
A partnership is a business structure where two or more individuals work together in running a business, sharing responsibilities and profits. It is easier to establish and manage than a corporation and offers benefits like no special taxes and the ability to attract investors.
Step-by-step explanation:
A partnership refers to a business structure where two or more individuals work together in owning and running a business. In a general partnership, owners share both the responsibilities and profits that come from operating their business. It is fairly easy to start up, with details of the partnership agreed upon in the partnership paperwork. Unlike a corporation, which is a group authorized by law to act as a single entity to make money, a partnership involves personal involvement and is simpler to manage.
Partnerships offer several advantages, such as no special taxes, the ability to attract investors, and typically have a management efficiency that is more optimal than that of a sole proprietorship. While larger and more formal businesses may choose to incorporate, many private businesses operate effectively as partnerships or sole proprietorships, depending on their size and the number of owners involved.