Which of the following partnerships can be classified as a nontrading partnership engaged in providing services?
A)Dairy farming
B)General contracting
C)Real estate brokerage
D)Manufacturing

Question

Quizplus · Accepted Answer

A nontrading partnership has no substantial inventory and is usually engaged in providing services-for example,accounting services or real estate brokerage.Businesses such as general contracting,manufacturing,and dairy farming,although not exclusively devoted to buying and selling inventory,have been held to be trading partnerships.The rationale for their inclusion in this category is that borrowing is necessary in the ordinary course of business to augment their working capital.

Which of the Following Partnerships Can Be Classified as a Nontrading