Arthur, Betty, and Clara each inherit an undivided one-third interest in an apartment complex. Instead of selling it, they decide to continue to operate it for the next few years as a sideline to their other occupations just to see if they can earn some extra money. What are they?
A) A partnership.
B) Co-owners only.
C) A corporation.
D) Creditors of the apartment complex.

Question

Quizplus · Accepted Answer

When individuals co-own a business with the intent to share profits, they form a partnership, even if they do not have a formal partnership agreement.

Arthur, Betty, and Clara Each Inherit an Undivided One-Third Interest