Harold and Zack have pooled their money together 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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Harold and Zack have pooled their money together to buy real estate and are handling different aspects of the business, but have not filed any formal papers to form a separate legal entity. This situation fits the definition of a partnership, which is an association of two or more persons to carry on a business for profit as co-owners. Partnerships can be formed by an oral agreement or implied by conduct, and are governed by state law. In this case, Harold and Zack may have a verbal understanding or an implied agreement regarding how they will share profits, losses, and management responsibilities. However, without proper documentation, they may be exposing themselves to personal liability for any legal or financial problems that arise from their business activities.

Harold and Zack Have Pooled Their Money Together to Buy