Which of the following is classified as a Business Entity?

A partnership is classified as a business entity because it represents a formal agreement between two or more individuals to manage and operate a business together with the aim of making a profit. Each partner contributes to the business in terms of capital, expertise, or labor, and they share the profits and losses according to the partnership agreement. Partnerships are recognized as legal entities which have certain rights and responsibilities, making them distinct from sole proprietorships and individual business structures.

In contrast, a single individual or a sole proprietorship refers to a business owned and operated by one person, where the owner has full control but also bears all the risks. A private family trust, while it may hold business assets, is primarily designed for managing assets and wealth for family members, rather than functioning as a business enterprise itself. This distinction clarifies why the partnership fits the definition of a business entity more appropriately than the other options.