An association of 2-20 partner operating a business for the common goal of making a profit

• A. Co-operative
• B. Partnership
• C. Sole Trader
• D. Producer

Answer: (B)

A partnership is formed when two or more people come together to run a business with the goal of earning profit, sharing both the profits and the management responsibilities according to an agreement. The situation described—an association of two to twenty partners operating a business for profit—fits this model because the defining feature is multiple owners pooling resources and sharing control. In many cases, partners are personally liable for the business’s debts, and the partnership can evolve as partners join or leave. This differs from a co-operative, which is owned by its members for mutual benefit; a sole trader, which has a single owner; and a producer, which is not defined by a specific multi-owner structure.