John Bloomberg and Erick Ashman have been working together to earn money by doing yard work in residential areas.John collects the payments and has purchased the equipment the two use,including a lawn mower,edger,and trimmers.After deducting expenses for gasoline,repairs,and insurance,John gives one-half of the net to Erick.The two have no agreement about their relationship.Which of the following is correct?
A)John and Erick have a general partnership.
B)John and Erick have a limited partnership.
C)John and Erick have a joint venture.
D)John and Erick have no business structure because they have no agreement.

Question

Quizplus · Accepted Answer

John and Erick have a general partnership because they are conducting a business together with the intent to make a profit, sharing both the profits and losses, despite not having a formal agreement. This is characteristic of a general partnership.

John Bloomberg and Erick Ashman Have Been Working Together to Earn