What is the definition of a partnership?

The definition of a partnership as an association of two or more persons to carry on as co-owners a business for profit captures the essence of what constitutes a partnership in business law. Partnerships are fundamentally characterized by the collaborative efforts of individuals who share the responsibility for the business's operation and the profits generated from it. This definition emphasizes the cooperative nature of partnerships, highlighting both the engagement in business and the primary goal of making a profit.

In contrast, the alternative choices do not align with the established legal definition of a partnership. The description of a group of individuals working independently does not reflect the co-owning principle inherent in partnerships. The notion of a legal entity that protects personal assets pertains to structures like corporations or limited liability companies, which provide liability protection distinct from partnerships. Lastly, a contract between multiple firms to share resources and expertise describes a type of collaborative agreement, but it does not encompass the ownership and profit-sharing aspects fundamental to a partnership.