In which of the following situations will the inference of the existence of a partnership be drawn from the receipt of profits of a business?
A) Where payments of a debt are made to a creditor in installments from the profits of the partnership
B) Where wages are paid to an employee who is not also an owner
C) Where an annuity is paid to the widow of a deceased partner from partnership profits
D) Neither the creditor,the employee,nor the widow in these situations will be considered a partner under the guidelines in the RUPA.

Question

Quizplus · Accepted Answer

Under the Revised Uniform Partnership Act (RUPA), merely receiving a share of the profits as payment (such as debt installments, wages, or an annuity) does not by itself establish a partnership. These scenarios are specifically outlined as exceptions to the presumption of partnership based on profit sharing.

In Which of the Following Situations Will the Inference of the Existence