John, George, and Ringo pool their money to buy land to operate an insect farm from which they plan to sell the insects for medicinal uses and share the profits or losses. Are they partners?
A) Yes, since they are associating to carry on a for-profit business which they co-own.
B) No, because they each control the use of the land.
C) Yes, because if there is a loss in the land's value, they will all share that loss.
D) No, they are merely joint venturers.

Question

Quizplus · Accepted Answer

A partnership is formed when individuals associate to carry on a business for profit as co-owners, which is the case with John, George, and Ringo pooling money to buy land and operate an insect farm with the intention of sharing profits or losses.

John, George, and Ringo Pool Their Money to Buy Land