Final answer:
A partnership is a business arrangement where two or more individuals own and manage a company together, sharing the responsibilities and profits. This differs from a sole proprietorship, which is managed by one person, and a corporation, which is owned by shareholders.
Step-by-step explanation:
An association of two or more persons who carry on as co-owners of a business for profit is the definition of a partnership. General partnerships involve at least two individuals who collaborate in owning and operating their business. This business structure allows the owners to share both the responsibilities of managing the enterprise and the profits generated. Unlike a sole proprietorship, which is a business organized by a single individual where the owner is responsible for all debts and liabilities as well as being entitled to all profits, a partnership involves multiple owners.
Partnerships can often be seen in private companies where a group of individuals, such as lawyers, run the firm on a day-to-day basis. In contrast, a corporation is a business entity that is authorized by law to act as a single entity and is usually established with the intent to generate profit, owned by shareholders, and managed by directors and executives.