Luke and Maya form Northeast Air Express, a general partnership. The essential elements of this partnership do not include
A) a sharing of profits and losses.
B) a joint ownership of the business.
C) an equal right to management in the business.
D) goodwill.

Question

Luke and Maya form Northeast Air Express, a general partnership. The essential elements of this partnership do not include
A) ​a sharing of profits and losses.
B) ​a joint ownership of the business.
C) ​an equal right to management in the business.
D) ​goodwill.

Quizplus · Accepted Answer

Goodwill is not an essential element of a partnership. It is a non-physical asset that is often considered when determining the value of a business, but it is not necessary for the formation of a partnership. The essential elements of a partnership include a sharing of profits and losses, joint ownership of the business, and an equal right to management in the business.

Luke and Maya Form Northeast Air Express, a General Partnership