In business law and commerce, the partnership form of business organisation is best described as which of the following?

Introduction / Context:
Different forms of business organisation, such as sole proprietorship, partnership, and company, are fundamental topics in commerce and business studies. Many exam questions ask you to distinguish between these forms using their definitions and key characteristics. This question focuses on the partnership form of business organisation and asks which statement best describes what a partnership actually is in legal and practical terms.

Given Data / Assumptions:
- The subject is the partnership form of business organisation. - One option should describe partnership correctly under standard business law principles. - Other options describe different forms of organisation, such as sole proprietorship, company, or public enterprise. - We assume the usual definition from partnership laws: an agreement between two or more persons to share profits of a business carried on by all or any of them acting for all.

Concept / Approach:
A partnership is formed when two or more persons come together, contribute capital or effort, and agree to share the profits and losses of a business. Each partner is an owner and has certain rights and responsibilities. The approach is to identify the option that explicitly mentions two or more persons and the sharing of profits and losses. At the same time, we must reject options that describe a single owner, a public company with shares traded on a stock exchange, or a government enterprise, because those correspond to different business forms.

Step-by-Step Solution:
Step 1: Recall the basic definition: partnership is a relationship between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Step 2: Examine option a, which describes a business owned and managed by a single individual. That matches a sole proprietorship, not a partnership. Step 3: Examine option b, which states that partnership is a voluntary association of two or more persons who agree to share profits and losses. This clearly reflects the standard definition. Step 4: Examine option c, which refers to a large company whose ownership is divided into many shares traded on a stock exchange. That describes a joint-stock company or public limited company, not a partnership firm. Step 5: Examine option d, which describes a government-owned enterprise fully controlled by the state. This corresponds to a public sector undertaking, not a private partnership. Step 6: Since only option b captures the essential elements of partnership, we select option b as correct.

Verification / Alternative check:
You can verify the answer by comparing it with the language of partnership laws and commerce textbooks, which always emphasise three key elements: more than one person, a business carried on together, and an agreement to share profits (and by implication, losses). Partnerships usually arise from a partnership deed that records these terms. Option b is the only one that fits these criteria fully and clearly.

Why Other Options Are Wrong:
Option a is wrong because it describes a sole proprietorship with a single owner, whereas partnership requires at least two persons. Option c is incorrect because it talks about a large joint-stock company with shares traded on a stock exchange, which has a completely different legal structure and separate legal personality. Option d is also incorrect because a government enterprise is not formed by a voluntary agreement among private individuals but by the state for public or strategic purposes. None of these reflect the true nature of a partnership firm.

Common Pitfalls:
A common pitfall is to focus only on the word share and mistakenly think that any business with shares must be a partnership. In reality, companies issue shares, but partnerships usually do not. Another frequent error is to overlook the requirement that at least two persons are involved and that there must be a clear agreement to share profits and losses. Remembering these core features will help you reliably identify the partnership form in exam questions.

Final Answer:
The partnership form of business organisation is best described as a voluntary association of two or more persons who agree to share the profits and losses of a business.