Sue,Barb,and Carlotta agree to put in $1,000 each to set up a shelter for lost animals.They each work two days a week.Donations fund the day-to-day operations.Do they have a partnership?
A) Yes,since each has control of the operation
B) Yes,because they are all co-equals in ownership of the shelter
C) No,because they have made no formal agreement
D) No,because there is no business for profit

Question

Quizplus · Accepted Answer

The key factor that determines a partnership in this context is the intention to form a business for profit. Since the shelter is funded by donations and operates as a service for lost animals rather than a profit-making business, it does not constitute a partnership in the traditional business sense.

Sue,Barb,and Carlotta Agree to Put in $1,000 Each to Set