What best describes a general partnership?

A general partnership is best described as an association of two or more general partners. In this business structure, each partner typically shares in the profits, responsibilities, and liabilities of the partnership. This means that all partners have equal management authority and are personally liable for the debts and obligations incurred by the partnership, which is distinct from other business entities like corporations or LLCs where liability is limited.

The essence of a general partnership lies in the collaborative nature of its members, and this type of partnership is formed informally without the need for extensive regulatory filings, unlike a corporation or an LLC. In a general partnership, the partners are often actively involved in the daily operations and decision-making processes, directly contributing to the partnership's objectives.

Other types of business entities mentioned, such as corporations or trusts, do not share these characteristics and indicate different legal frameworks and operational structures. A corporation is owned by shareholders and has distinct legal protections, while a trust is a fiduciary arrangement established by an individual for managing assets, which does not encapsulate the concept of a partnership.