Luke and Maya form Northeast Air Express, a partnership. The essential elements of this partnership do not include

Question

Luke and Maya form Northeast Air Express, a partnership. The essential elements of this partnership do not include​

Quizplus · Accepted Answer

Goodwill is not an essential element of a partnership. Goodwill is the value of reputation, customer base, and other intangible assets of a business, which can be bought or sold separately. While it may be desirable for a partnership to have goodwill, it is not necessary for the formation or existence of a partnership. The essential elements of a partnership are the sharing of profits and losses, joint ownership and control of the business, and mutual agency (meaning each partner can act on behalf of the partnership).

Luke and Maya Form Northeast Air Express, a Partnership