What type of business association is defined as two or more persons carrying on a trade or business together as co-owners for profit?

The correct answer is the partnership because it specifically refers to a business arrangement where two or more individuals collaborate as co-owners to conduct a trade or business with the intention of generating profit. In a partnership, each partner contributes resources, skills, and effort while sharing in the profits and losses of the enterprise.

Partnerships are characterized by mutual agency and shared responsibility, which are crucial for cooperative efforts in running a business. This structure enables flexibility in management and the pooling of resources, which can be beneficial for achieving common business goals. Unlike a corporation, a partnership does not have the same formal structure or regulatory requirements, making it easier to establish and manage.

In contrast, options like a corporation and a limited liability company (LLC) represent distinct legal entities that offer different liability protections and management structures. A trust serves a different purpose altogether, primarily focused on managing assets on behalf of beneficiaries and is not considered a business association in the same sense as a partnership. Hence, the partnership is correctly identified as the business association where individuals operate together for profit.