Arthur, Betty, and Clara each inherit an undivided one-third interest in an apartment complex. Instead of selling it, they decide to continue to operate it for the next few years as a sideline to their other occupations just to see if they can earn some extra money. What are they?
A) A partnership.
B) Co-owners only.
C) A corporation.
D) Creditors of the apartment complex.

Question

Quizplus · Accepted Answer

They are a partnership because they have agreed to operate the apartment complex together with the intention of making a profit, which meets the basic definition of a partnership.

Arthur, Betty, and Clara Each Inherit an Undivided One-Third Interest