Which of the following is the proper definition of a partnership as set out in the Partnership Act?
A) Partnership exists where two or more persons carry on business together with a view towards profits.
B) A partnership exists where any business is carried on with a view towards profits.
C) A partnership is created where a corporation with shareholders is registered with the federal government.
D) A partnership is only created where the partners actually share the profits from a business.
E) A partnership exists only where two or more people enter into a written agreement to be partners.

Question

Quizplus · Accepted Answer

A partnership, as defined in the Partnership Act, is a relationship that exists between two or more persons who carry on a business together with the aim of making a profit. This definition emphasizes the collaborative effort in business for the purpose of generating profits, without specifying the need for a written agreement or the involvement of a corporation.

Which of the Following Is the Proper Definition of a Partnership