Partnership

/ˈpɑrtnərˌʃɪp/ noun

Definition

A business structure where two or more individuals share ownership, profits, losses, and management responsibilities according to their partnership agreement. Partners typically have unlimited personal liability for business debts and obligations, unless structured as a limited partnership.

Etymology

From Old French 'parçonier' meaning 'joint heir' and Middle English 'ship' denoting state or condition. The legal concept evolved from medieval merchant partnerships and Roman law societas, formalized in English common law as a way to govern shared business ventures.

Kelly Says

Partnerships are like business marriages—you're legally tied to your partner's decisions and debts, even if you disagree with them! Unlike corporations, partnerships don't pay taxes themselves; instead, profits and losses 'pass through' to partners' personal tax returns.

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