Definition: A partnership is a formal arrangement between two or more parties to manage and operate a business and share its profits and liabilities. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments, or combinations. Key characteristics of a partnership include shared ownership, shared responsibility, and shared profits and losses. Partnerships can vary in terms of the degree of liability and management involvement each partner has, depending on the type of partnership agreement formed.
Advantages: During partnership, decision-making takes place through consensus, which leads to more thoroughly vetted and accepted outcomes. Partners here combine their data and analytical resources to make more informed decisions, and with the collective experience and knowledge of all partners, they can do strategic planning.