A business partnership is a formal arrangement between two or more individuals or entities to collaborate on business activities. In this setup, partners share profits, losses, and responsibilities, which can lead to increased resources and expertise. Partnerships can take various forms, such as general partnerships, where all partners manage the business, or limited partnerships, where some partners have limited involvement. These partnerships are often governed by a legal agreement that outlines each partner's roles, contributions, and profit-sharing arrangements. This structure can enhance business growth and innovation, as partners can combine their skills and networks to achieve common goals.