Van starts Wind Systems to make and sell turbines. Later, Van contracts with Xi to invest additional capital in the firm in exchange for 25 percent of the profits. Vaughn and Xi are not partners in Wind Systems because

Question

Quizplus · Accepted Answer

The fact that Vaughn and Xi do not have joint control over the business means that they do not have the legal relationship of partners. Sharing profits equally, sharing losses, or the timing of their investment are not determinative of whether or not they are partners.

Van Starts Wind Systems to Make and Sell Turbines