Which of these statements is true about a partnership?

The statement that partners are equally liable for profits and losses accurately describes a fundamental principle of partnership agreements. In a partnership, all partners share the responsibility for the business's financial obligations, which means they equally bear the risk of losses as well as the benefit from profits. This shared liability encourages collaboration and mutual support among partners as they work towards the common goals of the business.

Having equal responsibility also means that profits are typically distributed based on the partnership agreement, which might specify equal sharing or proportionate to the contribution each partner has made. This concept is vital for ensuring fairness in the business operations and fostering a sense of teamwork.

The other statements do not hold true in the context of partnerships. For instance, while partners may indeed collaborate on decisions, not all partnerships afford each partner complete control over business decisions; decision-making authority can vary based on the partnership agreement. Furthermore, partnerships are not limited to just two members; they can comprise multiple partners. Lastly, transferring ownership in a partnership is more complex than in some other business structures, as it generally requires the consent of existing partners and may necessitate a formal agreement to change the ownership structure.