In partnerships, the business is managed collectively by the partners, and profits and losses are shared according to the partnership agreement. Such business structures benefit from the diverse skills of each partner, leading to innovative ideas and strategies. Globally, partnerships are favored for their simplicity and flexibility. Various types of partnerships exist, including general partnerships, limited partnerships, and limited liability partnerships, each possessing unique characteristics. Typically, partnerships are pass-through entities for tax purposes, whereby profits are taxed at the individual partners' rates.

The advantages of partnerships include combined resources and expertise, shared financial burdens, and collaborative decision-making. However, disadvantages such as unlimited liability for general partners and potential conflicts must be considered.

A prime example of a successful partnership is the collaboration between Ben Cohen and Jerry Greenfield. They began their venture with a small ice cream shop that, over the years, evolved into one of the world's most popular ice cream brands, renowned for its innovative flavors. Ben Cohen primarily handled the creative side, developing new ice cream flavors, and managed operations to maintain efficient production and high-quality products. Jerry Greenfield took charge of the financial aspects, including budgeting, planning, and ensuring the company's financial stability. Their complementary skills and shared values enabled them to build a business that achieved financial success and positively impacted society.