Sam and Jemma each owned a 50 percent interest in an office building.Which of the following is a factor that would support a conclusion that their relationship is NOT a partnership?

Question

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In a partnership, both partners share in the profits and losses of the business and are actively involved in its management. However, in this scenario, Sam has no active role in the business and only has a 50 percent interest in the building as security for a loan he made to Jemma. This indicates that their relationship is likely not a partnership.

Sam and Jemma Each Owned a 50 Percent Interest in an Office