Jack and Jill were living together.Jack wanted to start a small retail store,but did not have good credit.Jill,whose credit was excellent,signed loan agreements with Jack so he could borrow the money to start the business.Jack used business cards that stated he was the "owner" of the business.He and Jill filed separate tax returns.Jack stated he was self-employed and claimed the business was a sole proprietorship.The money that was earned from the store was placed into a joint checking account owned and used by Jack and Jill.When there were significant decisions to be made about the business,such as deciding to franchise the business,the decision was made jointly by Jack and Jill.
Five years after the business was started,Jill left Jack.She claimed she was entitled to one-half the business's profits since she and Jack were partners.Jack disagreed and claimed they never had a partnership.Discuss Jill's claim.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q16: Common law plays an important role in
Q17: A partner always has the right,though not
Q18: Doyle contributed $10,000 when he became a
Q19: In determining if a partnership exists,the courts
Q20: A partnership can only be held liable
Q22: Ending a partnership involves which of the
Q23: Nancy was a partner of a small
Q24: Daria is a partner in a small
Q25: Art and Alma made capital contributions of
Q26: Kayla and Marshall formed a partnership.Marshall incurred
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents