A partnership is an association formed by two or more taxpayers (who may be any type of entity) to carry on a trade or business.

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This statement is true. A partnership is a type of business entity where two or more individuals or entities come together to collaborate and share profits and losses in a trade or business. Partnerships do not pay income tax themselves, but each partner reports their share of profits or losses on their individual tax returns.

A Partnership Is an Association Formed by Two or More