Which of the following statements about partnerships is true?

Partnerships are governed by the partnership agreement, which outlines the terms and conditions under which the partnership operates. One of the fundamental principles of partnerships is the freedom of partners to agree on their terms. This means that partners have broad flexibility to establish how much capital each partner contributes, how profits will be distributed, and the management structure, among other operational aspects. This autonomy to craft their agreement is a defining characteristic of partnerships, and it allows the partners to tailor their agreement to fit their specific needs and circumstances.

The other statements do not accurately reflect the usual structure of partnerships. For instance, while it is often the case that partners share management responsibilities, the management rights can differ based on the partnership agreement, and not all partners have equal say regardless of their type. Additionally, partnerships can be formed with as few as two partners; there is no requirement for three. Moreover, it is not a blanket requirement that all partnerships must be registered with the state; many partnerships can operate without formal registration, particularly general partnerships, though limited liability partnerships and limited partnerships may have registration or filing requirements.