Sam and Jemma Each Owned a 50 Percent Interest in an Office

question 11

Multiple Choice

Sam and Jemma each owned a 50 percent interest in an office building.Which of the following is a factor that would support a conclusion that their relationship is NOT a partnership?

• A)Sam and Jemma are actively involved in the management of the building.
• B)Sam and Jemma are jointly responsible for all expenses associated with the building.
• C)Sam and Jemma have a bank account out of which they pay expenses relating to the building and each has signing authority.
• D)Sam takes responsibility for finding tenants and Jemma collects the rents.
• E)Sam lent the money to Jenna for the office building and he has a 50 percent interest as security for the loan.Sam takes no active part in the business, its profits, or its losses.

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Definitions:

Psychological Factor

Elements of human psychology that influence an individual's behavior, emotions, or mindset, often impacting decision-making and social interactions.

Dysfunctional Leadership

A leadership approach that negatively affects organizational culture and employee well-being through toxic, self-serving, or inept practices.

Organizational Success

The achievement of the goals and objectives set by a business or institution, typically measured by financial performance, market share, or fulfillment of mission.

Toxic Leaders

Leaders who have a detrimental impact on their followers or organization due to destructive, abusive, or unethical behavior.