Which of the following accurately describes the nature of a partnership?

A partnership is fundamentally characterized by the association of two or more individuals who agree to carry on a business together with the aim of sharing profits. This relationship does not necessarily require a formal written agreement; rather, it can be established through conduct, verbal agreements, or written documentation. The key elements are the intention to associate and the existence of a business operation with the goal of profit-sharing.

The idea that a partnership must have a formal written agreement is misleading since many partnerships exist without such formalities, and oral agreements can also suffice as evidence of the partnership's formation. Furthermore, partnerships are not limited in number; they can have two or more partners, and there is generally no upper limit to the number of partners involved. Lastly, partnerships are certainly not prohibited from operating for profit; in fact, the pursuit of profit is one of the defining characteristics of a partnership. Thus, the correct answer captures the essence of the partnership's nature and its flexibility in formation and operational purpose.