When two or more people form an organization, it is called a:

• A. Sole Proprietorship
• B. Partnership
• C. Corporation
• D. Not-for-Profit

Answer: (B)

Two or more people forming an organization is a partnership. A partnership is defined by shared ownership and shared profits and losses among the partners, typically governed by an agreement and with partners sharing liability. This differs from a sole proprietorship, which has a single owner; a corporation, which is a separate legal entity owned by shareholders; and not-for-profit, which is organized to pursue a mission and has tax-exempt status rather than operating to earn profits for owners. In healthcare settings, partnerships are common when clinicians or investors pool resources and share risk and rewards.