Which description matches a partnership?

• A. An individual owner with unlimited liability.
• B. A business organization owned by two or more persons who share responsibilities and profits, with unlimited liability.
• C. A business with separate legal identity and limited liability.
• D. A cooperative with limited liability and government backing.

Answer: (B)

A partnership is a business owned by two or more people who work together, sharing both duties and profits. A defining feature is unlimited liability, meaning each partner is personally responsible for the debts of the business. There’s no separate legal entity apart from the owners, so personal assets can be at risk if the business owes money. This description fits a partnership because it emphasizes multiple owners who share responsibilities and profits alongside unlimited liability, which distinguishes it from a company (separate legal identity and limited liability) or a cooperative (member-owned and differently structured).