When two or more persons with a common interest in business share profits and losses,a partnership exists.

Question

Quizplus · Accepted Answer

The key to a partnership's existence is satisfying the elements of its definition: two or more persons, a common interest in business, and sharing profits and losses. If the parties conduct their affairs in such a way as to meet these definitional elements, a partnership exists regardless of whether the persons involved call themselves partners or not.

When Two or More Persons with a Common Interest in Business