What is true about partnerships?

Partnerships function as legal entities distinct from the individual partners involved, which allows them to enter into contracts, hold assets, and incur liabilities in their own name. This separation provides benefits such as liability protection and the ability to raise funds collectively. While the partners are personally liable for the debts and obligations of the partnership, the partnership itself is recognized as a separate entity in the eyes of the law, distinguishing it from sole proprietorships where the individual and business are considered the same.

The other options highlight misconceptions about partnerships. For instance, partnerships can indeed own property, and they do not require a specific state license to operate unless they engage in regulated professions. Moreover, partnerships can be formed with a minimum of two partners, not three, allowing for flexibility in structure and organization. This understanding of partnerships is crucial for navigating legal and business frameworks concerning joint ventures and collaborations.