According to the Uniform Partnership Act, the three key elements of any general partnership are:
A) A board of directors, a written partnership agreement, and a well-defined product or service.
B) Two owners, an adequate financial base, and a written statement describing the manner in which profits and losses will be divided.
C) Common ownership, shared profits and losses, and right to participate in management.
D) Common stock, a board of directors, and a statement of limited liability.

Question

Quizplus · Accepted Answer

The Uniform Partnership Act defines a partnership as a "relationship that exists between persons carrying on a business in common with a view to a profit." This definition includes the three key elements listed in choice C: common ownership, shared profits and losses, and right to participate in management. This distinguishes a partnership from other business structures like corporations (which have stock and a board of directors) and sole proprietorships (which have a single owner and no formal agreement). Choice A is incorrect because a partnership does not require a board of directors or a well-defined product or service. Choice B is incorrect because it does not include the requirement of shared management or control. Choice D is incorrect because partnerships do not issue stock and do not have limited liability.

According to the Uniform Partnership Act, the Three Key Elements