Which one of the following situations will result in a partnership existing? Assume that no corporation has been created.
A)Joe and Mary own a house together and share the income from it.
B)A lawyer and a real estate agent split a commission.
C)Employees are given bonuses because of increased profits.
D)Joe pays back a debt to Harry by giving Harry a percentage of the profits from his business.
E)Joe and Mary own a shoe store together and share the profits.

Question

Quizplus · Accepted Answer

Joe and Mary owning a shoe store together and sharing the profits constitutes a partnership. The other options do not involve a shared business or joint endeavors, which are necessary for a partnership to exist.

Which One of the Following Situations Will Result in a Partnership