The existence of a partnership is established solely by the sharing of profits and losses.

Question

Quizplus · Accepted Answer

While the sharing of profits and losses is a characteristic of a partnership, it is not the sole factor in determining the existence of a partnership. Other factors, such as joint ownership and control of a business, mutual agency, and a contractual agreement between the partners, are also important in establishing a partnership.

The Existence of a Partnership Is Established Solely by the Sharing