Question

How many persons are required to form a partnership?

• A. Only two.
• B. At least two.
• C. More than two.
• D. Only one.

Answer 1

Answer: (B)

At least two.

A partnership is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, business, interest based organisation, schools, governments or combinations. Organization may partner to increase the likelihood of each achieving their mission and to amplify their reach. A partnership may result in issuing and holding equity or may be only governed by a contract.

Number of Partners is minimum 2 and maximum 50 in any kind of business activities. Since partnership is ‘agreement’ there must be minimum two partners.