What defines a partner's role in relation to other partners in a partnership?

A partner's role in a partnership is primarily defined as an agent of the partnership. This means that each partner has the authority to act on behalf of the partnership and bind the partnership in business dealings as long as these actions are within the scope of the partnership's business. Partnerships operate under the principle of mutual agency, where all partners can engage in transactions and make commitments for the partnership, thereby impacting all other partners.

In contrast, the other options do not accurately capture the nature of a partner's role. An independent contractor typically operates independently and does not have the agency authority that partners possess. A limited partner, while part of a partnership, does not have the same agency powers and typically has restricted roles, often focusing purely on investment without participation in management. Shareholders are associated with corporations, not partnerships, and their role does not involve the agency relationship characteristic of partnerships. Thus, defining a partner as an agent of the partnership correctly encapsulates the responsibilities and authority inherent in the role.