Which of the following is true with regard to partnership?
A)The terms of the Partnership Act will be implied in a partnership agreement that includes provisions on the same point.
B)Sharing gross receipts is sufficient evidence of the existence of a partnership.
C)A general partner is not an agent of the firm and the other partners.
D)No partnership can be formed unless the parties intended to create a partnership.
E)A limited partnership is an arrangement in which a partner may limit liability to his capital contribution.

Question

Quizplus · Accepted Answer

A limited partnership is an arrangement in which a partner may limit liability to his or her capital contribution. This is the main difference between a general partnership, where partners share unlimited liability, and a limited partnership, where at least one partner has limited liability. The other statements are not entirely accurate. The terms of the Partnership Act may not be implied in a partnership agreement, gross receipts alone are not sufficient evidence of a partnership, a general partner is an agent of the firm, and the intent to create a partnership is only one factor in determining whether a partnership exists.

Which of the Following Is True with Regard to Partnership