Which of the following would be the most convincing evidence of a partnership?
A) An agreement to share in the management of a business.
B) Agreements to share gross returns.
C) An agreement to share profits and losses.
D) An agreement to pay a firm manager a percentage of the profits for his salary.

Question

Quizplus · Accepted Answer

An agreement to share profits and losses is a fundamental characteristic of a partnership, indicating a mutual interest in the success and risks of the business. Sharing in management or gross returns, or paying a manager from profits, does not necessarily establish a partnership.

Which of the Following Would Be the Most Convincing Evidence