Clark and Nestor start a catering business together. They sign a legal contract that states that the business is owned by them. The agreement also states that they will have an equal share in the profits of the business and will be equally liable for any losses incurred by the business. This scenario exemplifies _____.

Question

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This scenario exemplifies a partnership, where two or more individuals share ownership, profits, and liabilities of a business.

Clark and Nestor Start a Catering Business Together