What is a Business Partnership?
A business partnership is a legal relationship between two or more individuals who agree to operate a business together for mutual profit. In this arrangement, each partner contributes resources such as capital, skills, or labor, and shares the risks, responsibilities, and rewards of the business. Partnerships can be formed with varying levels of involvement and liability, from general partnerships where all partners share equal responsibility to limited partnerships where some partners have restricted liability. This collaborative model offers benefits such as shared expertise, pooled resources, and combined decision-making but also comes with potential challenges, including conflicts between partners or unequal distribution of work and profits.