Final answer:
Partnership is a business structure where two or more co-owners operate a company together, sharing responsibilities, profits, and liabilities. It is one of the forms of business organizations alongside sole proprietorships and corporations. Partnerships occur in various sizes and can range from small firms to large private companies without publicly issued stock.
Step-by-step explanation:
Partnership is a form of business ownership in which the company is operated by two or more people who are co-owners by voluntary legal agreement. In a general partnership, the partners work together in owning and managing the business, sharing responsibilities, profits, and liabilities. This stands in contrast to a sole proprietorship, where a single individual owns and operates the business, and a corporation, which is a more complex structure that can involve private or public stock.
When individuals share ownership and management of a law firm, for example, they operate under a partnership. This arrangement allows for the efficient use of pooled resources and skills but also means sharing in the risks and rewards. Conversely, large private corporations like Cargill and Mars, though not partnerships, demonstrate the diversity within private company structures where ownership doesn't necessarily mean daily management.