Harold and Zack have pooled their money to buy real estate but have filed no formal papers to form a business.Harold,a lawyer,handles all the legal matters and Zack,a real estate broker,finds buyers for the property they have subdivided.Harold and Zack are engaged in a:

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The scenario described fits the definition of a partnership, which is an unincorporated business owned and operated by two or more people who share its profits and liabilities. In this case, Harold and Zack have pooled their money and each contributes their expertise to the business without forming a separate legal entity. As partners, they are jointly liable for any debts or legal claims against the business, but they also share in the profits. A professional corporation is a type of business structure typically used by licensed professionals such as lawyers and doctors, but it requires formal registration with the state. A limited liability company (LLC) is a hybrid structure that offers liability protection for its owners (known as members), but it requires formal registration and the adoption of an operating agreement. A business trust is a type of investment vehicle that is not typically used for real estate ventures.

Harold and Zack Have Pooled Their Money to Buy Real