What constitutes a general partnership?

A general partnership is defined as an association of two or more persons who come together to co-own a business for profit. This definition captures the essence of a partnership, which involves not just the sharing of resources but also a mutual intent to operate a business aimed at generating profits.

In a general partnership, all partners typically share in the management responsibilities and the profits and losses of the business. The concept emphasizes collaboration and joint venture in the operation of a business, recognizing that the partners are engaged in a common financial goal. The understanding that such partnerships are formed specifically for profit distinguishes them from other forms of business entities, such as corporations or nonprofit organizations.

The other options do not encapsulate the fundamental aspects of a general partnership. For instance, an agreement between parties to invest capital only does not imply the intent to co-manage a business or share profits and losses. Similarly, an association to operate a nonprofit organization fundamentally differs from the profit motive inherent in a general partnership. Lastly, a business entity with one owner signifies a sole proprietorship, which lacks the fundamental component of multiple individuals co-owning the business. Thus, the only accurate representation of a general partnership is the association of two or more persons to co-own a business for profit.