Which of the following best defines a partnership?

The best definition of a partnership is an association of two or more persons to carry on a business for profit. This accurately reflects the essential characteristics of a partnership, which involves a collaborative effort among individuals who contribute to a business venture with the intent of generating profit.

In a partnership, there is typically a mutual agreement on how the business will be run and how profits will be shared. This definition highlights the intended purpose behind forming a partnership and establishes that it does not merely involve resource sharing or informal cooperation but rather indicates a formalized arrangement to pursue business objectives collectively.

While other options may touch on aspects related to partnerships, they do not encapsulate its primary function. For instance, agreements between companies might describe collaborations or joint ventures rather than partnerships in the legal sense. Similarly, a legal entity that limits liability would pertain more to corporations or limited liability companies rather than traditional partnerships, where personal liability is often more pronounced. Finally, merely describing a group of individuals without formal agreements does not convey the structured nature and purpose of a partnership as defined in business law.