Adams was approached by a Mr. McCarthy of XYZ Co., who requested that Adams pay $10,000 to extinguish a debt owed by the partnership of Adams and Jefferson. Adams denied the partnership and the liability. In asserting his claim, McCarthy cited the following facts, all of which he could prove. Which of these facts is the strongest evidence of the existence of a partnership?
A) Adams and Jefferson co-owned property.
B) Adams and Jefferson shared the profits from a business.
C) Adams and Jefferson shared gross returns from a business.
D) Adams and Jefferson worked together for a non-profit charity.
E) Adams received a commission from Jefferson based on the sale price of the goods sold by Adams for Jefferson.

Question

Quizplus · Accepted Answer

Sharing profits from a business is a strong indicator of a partnership because it implies a joint venture with shared financial interests and responsibilities, which is a key characteristic of a partnership.

Adams Was Approached by a Mr