Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025
Definition
A partnership is a form of business ownership where two or more individuals share the management, profits, and financial liabilities of the business. It combines resources and skills to achieve common business goals.
A partnership consisting of at least one general partner who manages the business and assumes legal debts and obligations, and one or more limited partners who are liable only up to the amount they invest.