Which of the following statements about partnerships is true?

Partnerships are a form of business organization that allows two or more individuals to collaborate in running a business. The statement indicating that partnerships can have unlimited partners is true because, in general, there is no statutory limit on the number of partners a partnership can have. This flexibility allows businesses to grow and adjust as needed by bringing in more individuals who want to share in the ownership and management of the business.

The other statements do not accurately reflect the nature of partnerships. For instance, stating that partnerships are owned by one individual contradicts the fundamental concept of a partnership, which requires at least two individuals. Likewise, partnerships are not required to be incorporated; they can be formed informally or through a written agreement, but incorporation is a separate legal structure that offers different characteristics. Lastly, while having a formal written agreement is beneficial as it lays out the terms of the partnership, it is not a legal requirement for a partnership to exist; partnerships can also form through verbal agreements and conduct.