What is a legal relationship where two or more persons are contractually associated as principals in a business?

A general partnership is a legal relationship where two or more individuals come together to conduct business as principals, sharing management responsibilities and profits. This arrangement allows each partner to contribute skills, resources, and capital to the business, creating a collective effort towards achieving common goals. Each partner involved in a general partnership also has unlimited liability, meaning they are personally responsible for the debts and obligations of the business, which differentiates it from other structures like limited partnerships or sole proprietorships.

In this type of partnership, the partners agree to share profits, which strengthens their commitment to the business. The relationship is established through a partnership agreement, outlining the roles, contributions, and distribution of profits among partners. This collaboration can enhance the efficiency and effectiveness of business operations, as partners can leverage each other's strengths and expertise.

Other options, such as a limited partnership, involve a mix of general and limited partners, where not all partners have equal management rights or liability. A sole proprietorship is an individual-owned business entity with no legal distinction between the owner and the business, while a joint venture is a temporary partnership for a specific project rather than an ongoing business relationship.