What is formed when people act toward a common purpose without incorporating?

• A. Association
• B. Corporation
• C. Partnership
• D. Trust

Answer: (A)

When people act toward a common purpose without going through incorporation, they create an association. An association is an unincorporated group formed by agreement among members to pursue a shared objective. It isn’t a separate legal entity like a corporation, so responsibilities and liabilities typically rest with the members or with the group as described in its bylaws. This differs from a corporation, which is a legally distinct person created by filing articles of incorporation; from a partnership, which is a business arrangement among individuals sharing profits and losses; and from a trust, where property is held by trustees for beneficiaries. In many communities or volunteer groups, an association covers the basic structure for coordinating efforts without forming a formal corporation.