Max has been sued for $20,000 as a partner with Jim Nogoode. Which of the following is false with regard to determining whether or not a person is a partner?
A) The legal relationship of partnership requires that two or more persons carry on business in common with a view to profit.
B) Co-ownership of a property does not in itself raise a presumption of partnership.
C) Sharing gross revenues of a business does not in itself raise a presumption of partnership.
D) If no profit was made in the business, Max would not be a partner.
E) Sharing of profits is evidence of the existence of a partnership.

Question

Quizplus · Accepted Answer

Sharing of profits is a common indicator of a partnership, but the absence of profit does not necessarily mean there is no partnership. Partnerships are defined by the intention to carry on a business together for profit, not by the actual realization of profit.

Max Has Been Sued for $20,000 as a Partner with Jim