What is a partnership? What are the advantages and disadvantages of a partnership?

What is a corporation? What are the advantages and disadvantages of a corporation?

Fact pattern for this question: Bill and Ted, best friends, formed an oral partnership called Excellent Adventure. The partnership started out as a farming business but grew into an oil business also. Bill was in charge of the farming and Ted was in charge of the oil business. By mutual agreement, the business practice was they each withdrew profits from the partnership that were attributable to each of their respective business pursuits $($Bill $$ farming, Ted $-$oil$)$ and, likewise, each paid the expenses related to their business pursuits in the same manner. Bill kept the farming income and paid the farming expenses from the farming monies. Ted did the same with the oil income and expenses. For IRS tax returns Bill and Ted each reported $50\%$ of the partnership$$s total income, gains, losses, deductions and credits on each of their individual tax returns. When Bill died, the partnership automatically dissolved. The IRS claimed there should be a a$50-50$ split in tax treatment and the distribution of the assets of the partnership, including the oil business. Ted claimed that he alone was entitled to the benefit of the oil business.