A partnership is best described as:

• A. A business owned by a single entity
• B. A business owned by two or more individuals with unlimited liability
• C. A nonprofit organization
• D. An incorporated organization

Answer: (B)

A partnership is characterized as a business model where two or more individuals collaborate to operate a business together. In a partnership, the owners, known as partners, share the responsibilities, profits, and losses of the business. One of the critical features of a partnership is the aspect of unlimited liability. This means that each partner is personally responsible for the debts and obligations of the business, which can extend to their personal assets. This arrangement contrasts sharply with corporations, where liability is limited to the amount invested in the business.

In the context of ownership, partnerships do not involve a single entity (as indicated in the first choice) or fit the description of corporate structures (as described in the last option). Nonprofit organizations (the third choice) also differ fundamentally from partnerships, as they function to serve a cause rather than generate profits for owners or shareholders.