Al and Tom are co-owners of "A & T Auto Repairs." The both consider themselves managers and the split the decision-making and profits 50/50, yet they do not have any formal paperwork stating that they are a partnership. Which of the following statements is true?

Question

Quizplus · Accepted Answer

In many jurisdictions, a partnership can be formed through the actions of the parties involved, without the need for formal paperwork. This is known as an implied partnership because their actions (sharing profits, decision-making, and presenting themselves as co-owners) imply that they have agreed to operate as partners.

Al and Tom Are Co-Owners of "A & T Auto