What characterizes partnerships?

Partnerships are characterized by an association of two or more individuals who come together to conduct business for profit. This definition encompasses the fundamental nature of a partnership, which relies on the collaboration and shared objectives of its members. Each partner contributes capital, labor, or skills and shares in the profits, benefits, and liabilities of the business. This structure allows for a diverse range of expertise and resources, often leading to increased opportunities and business growth.

While having a written agreement is often advisable for the clarity and protection of all parties involved, it is not a strict requirement for a partnership to exist. Additionally, partnerships can have more than two individuals, as there is no set limit on the number of partners in various types of partnerships. Therefore, the essence of a partnership lies in the mutual cooperation and intent to make a profit, which aligns with the chosen correct answer.