What defines a General Partnership?

A General Partnership is fundamentally defined as an association of two or more individuals or entities who come together to conduct business and share ownership and profits. This arrangement does not necessarily require formal documentation, which distinguishes it from other business entities like corporations or limited liability companies that do require formal registration.

In a General Partnership, all partners typically have equal responsibility for managing the business and are personally liable for its debts and obligations. This is crucial to understand, as it emphasizes the collaborative nature of the business relationship among partners. Furthermore, the absence of limited liability is a characteristic feature of General Partnerships, meaning each partner is potentially liable for the full extent of the partnership's debts, which is in contrast to other forms of business organization that offer liability protection.

Given these characteristics, option B accurately encapsulates the essence of a General Partnership, highlighting the key aspects of shared ownership and collaborative operations among the partners involved.