A partnership is a business structure where two or more individuals own and operate a business together. The partners share the profits and losses of the business and are jointly responsible for any debts and liabilities incurred by the business. The partnership is not a separate legal entity and the partners' personal assets are at risk. Therefore, option D is the correct answer.

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A Partnership Is a

Question 34

Multiple Choice

A partnership is a

A) business owned by shareholders whose liability for the firm's losses includes their personal wealth.
B) one-person operation that has many employees.
C) business owned by two or more partners who share the firm's profits but are not responsible for any losses.
D) business owned by two or more persons who share the firm's profits and losses.
E) business owned by shareholders whose liability for the firm's losses is limited to the value of the stock they own.

Correct Answer: