Sue, Barb, and Carlotta agree to put in $1,000 each to set up a shelter for lost animals. They each work two days a week. Donations fund the day-to-day operations. Do they have a partnership?
A) Yes, since each has control of the operation.
B) Yes, because they are all co-equals in ownership of the shelter.
C) No, because they have made no formal agreement.
D) No, because there is no business for profit.

Question

Quizplus · Accepted Answer

A partnership typically involves a business for profit, and since the shelter is funded by donations and not intended for profit, it does not constitute a partnership.

Sue, Barb, and Carlotta Agree to Put in $1,000 Each