Which one of the following situations will result in the existence of a partnership? Assume no corporation has been created.
A) Joe and Mary own a house together and share the income from it.
B) Joe pays back a debt to Harry by giving Harry a percentage of the profits from his business.
C) Joe and Mary own a shoe store business together and share the profits.
D) Employees are given bonuses because of increased profits.
E) A lawyer and a real estate agent split the commission.

Question

Quizplus · Accepted Answer

C) Joe and Mary owning a shoe store business together and sharing the profits is a classic example of a partnership. Partnerships are formed when two or more individuals agree to share the profits (and losses) of a business they run together.

Which One of the Following Situations Will Result in the Existence