Partnership

part·ner·ship   (pärt'nər-shĭp')    n.   The state of being a partner. A legal contract entered into by two or more persons in which each agrees to furnish a part of the capital and labor for a business enterprise, and by which each shares a fixed proportion of profits and losses. The persons bound by such a contract. A relationship between individuals or groups that is characterized by mutual cooperation and responsibility, as for the achievement of a specified goal: Neighborhood groups formed a partnership to fight crime.

partnership

An association of two or more persons to conduct a business. In contrast to a corporation, those who engage in a partnership are liable for debts incurred by the company to the full extent of their private fortunes rather than merely to the extent of their investment.

Partnership

A business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business.

Investopedia Commentary

Partnership doesn't always mean two people. There are many large partnerships who have thousands of partners.

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See also: Joint Venture, Limited Partnership - LP, Sole Proprietorship, Strategic Alliance

partnership

A business owned by two or more people who agree on the method of distribution of profits and/or losses and on the extent to which each will be liable for the debts of one another. A partnership permits pass through of income and losses directly to the owners. In this way, they are taxed at each partner's personal tax rate. Compare corporation, proprietorship. See also general partnership, limited partnership, silent partner.

Main Entry: part·ner·ship
Function: noun
: an association of two or more persons or entities that conduct a business for profit as co-owners —see also Uniform Partnership Act in the IMPORTANT LAWS section —compare CORPORATION, JOINT VENTURE, SOLE PROPRIETORSHIP
NOTE: Except in civil law as practiced in Louisiana, where a partnership, like a corporation, is considered a legal person, a partnership is traditionally viewed as an association of individuals rather than as an entity with a separate and independent existence. A partnership cannot exist beyond the lives of the partners. The partners are taxed as individuals and are personally liable for torts and contractual obligations. Each partner is viewed as the other's agent and, traditionally, is jointly and severally liable for the tortious acts of any one of the partners.

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commercial partnership
: TRADING PARTNERSHIP in this entry

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family partnership
: a partnership in which the partners are members of a family

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general partnership
: a partnership in which each partner is liable for all partnership debts and obligations in full regardless of the amount of the individual partner's capital contribution —compare LIMITED PARTNERSHIP in this entry

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limited liability partnership
: a partnership formed under applicable state statute in which the partnership is liable as an entity for debts and obligations and the partners are not liable personally

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lim·it·ed partnership
: a partnership in which the business is managed by one or more general partners and is provided with capital by limited partners who do not participate in management but who share in profits and whose individual liability is limited to the amount of their respective capital contributions —compare GENERAL PARTNERSHIP in this entry

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master limited partnership
: a limited partnership that offers interests for sale on the market; also : the interests themselves sold as securities

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min·ing partnership
: a partnership in which two or more persons jointly own a mining claim and actually engage in extracting minerals with the purpose of sharing profits and losses

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non·trad·ing partnership
: a partnership that is not engaged in the buying and selling of goods called also non-commercial partnership —compare TRADING PARTNERSHIP in this entry

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partnership at will
: a partnership whose duration is not fixed by contract and that is terminable at will by any partner

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partnership by estoppel
: a partnership created by operation of law when a defendant by words or conduct represents himself or herself to the plaintiff or to the public as a partner and the plaintiff relies on the representation to his or her detriment

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partnership in commendam
in the civil law of Louisiana : LIMITED PARTNERSHIP in this entry

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trad·ing partnership
: a partnership whose business involves the buying and selling of goods called also commercial partnership —compare NONTRADING PARTNERSHIP in this entry