Michelle bakes cakes during her vacations and sells them to people in her neighborhood. Her friend Diana visits her during the vacation and helps her out in baking. Michelle knows that baking is a lot of work, and insists on paying Diana for helping her. Diana picks up the techniques of baking quickly and soon begins visiting Michelle daily, to help her bake. She begins looking for new customers for cakes and, on Michelle's insistence, they start sharing the profits. Under this case, Michelle and Diana have a(n) _____ partnership.

Question

Quizplus · Accepted Answer

Michelle and Diana do not have a formal or express partnership agreement, but their actions imply that they have agreed to share the profits. This is an example of an implied partnership.

Michelle Bakes Cakes During Her Vacations and Sells Them to People