John and Pat purchased a joint interest in a two-hectare campground with a variety store and mini-golf course and retained the existing manager to handle day-to-day operations. From time to time they made improvements to the site and each year they divided the profits (or losses) from the campground equally. John and Pat are partners.

Question

Quizplus · Accepted Answer

John and Pat's joint purchase of the campground, their shared decision-making on improvements, and the equal division of profits and losses indicate a partnership, as they are engaging in business with the intent to share profits, which meets the criteria for a partnership arrangement.

John and Pat Purchased a Joint Interest in a Two-Hectare