What defines a partnership in a business context?

A partnership in a business context is defined as a type of business structure that is owned and operated by two or more individuals, typically ranging from two to twenty people. This business arrangement allows partners to share profits, responsibilities, and liabilities associated with the business operation. Each partner contributes resources, skills, or capital and participates in the management of the business. In this structure, partners often have a mutual agreement that outlines the terms of their partnership, including how profits and losses are shared and how decisions are made.

The other options do not accurately describe a partnership. Sole traders represent a different business structure where a single individual owns and operates the business, which contradicts the fundamental nature of a partnership. Additionally, the suggestion of a business being limited to government entities misrepresents the concept as partnerships can include private individuals in commercial contexts. Thus, the defining characteristic of a partnership being based on the involvement of multiple individuals aligns with the answer provided.