Definition - What does Partnership mean?
A partnership is when two or more people enter a business endeavor together where they work as a team and legally share the profits and losses of the business according to their arrangement. Partnerships occur in a wide variety of industries. This is because it often makes sense for two or more people to go into business together to share risks and responsibilities, as opposed to one person doing it all alone.
Justipedia explains Partnership
An example of a partnership would be four lawyers who start a law firm together. In this circumstance, the four partners would all split the profits of the business according to the terms of their agreement with each other. They would also share the losses, and the financial responsibilities. For example, if the law firm starts hiring employees who are not partners, such as other lawyers or paralegals, it would be up to all four partners to share the weight of the financial obligations that the new employees provide, such as salaries.