In a partnership, how is ownership characterized?

In a partnership, ownership is characterized by shared ownership. This means that two or more individuals come together to jointly own and operate a business, sharing both the responsibilities and the profits according to their partnership agreement. Each partner typically contributes to the business in various ways, which might include capital, skills, or resources. This collaborative approach allows for pooling of resources and expertise, leading to potentially enhanced business decision-making and operations.

The concept of shared ownership is fundamental to partnerships, distinguishing them from sole proprietorships, where ownership and management are the sole responsibility of one individual. In contrast to corporations, where ownership is divided among shareholders and can include a large and diverse group of investors, partnerships focus on a more intimate ownership structure. Therefore, the correct answer reflects the core characteristic of partnerships: multiple individuals entering into an agreement to co-own a business entity.