Jessica Had Operated a Business for Several Years

question 17

Multiple Choice

Jessica had operated a business for several years.Because the number of customers increased significantly, she persuaded Zach to work together with her.Two years after Zach came aboard, Jessica committed a tort while acting in the course of the business and caused a customer to suffer a substantial loss.A question has arisen as to whether Zach and Jessica were partners.Which of the following statements is TRUE?

• A)A partnership may exist even if Zach and Jessica signed a document that expressly said that their relationship was not a partnership.
• B)Zach will be considered a partner as long as he was paid for his services out of the business's profits.
• C)A partnership cannot exist unless the business holds property apart from both Jessica and Zach.
• D)The parties' business organization cannot be a partnership if the business was losing money with the result that there were no profits to share.
• E)Because Zach and Jessica were working together, he is liable for her tort even if they were not formally partners.

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Definitions:

Degrees of Freedom

The number of values in a calculation that are free to vary without violating any constraints applied to the dataset, often impacting statistical significance testing.

Left Tail Area

refers to the portion of a distribution curve to the left of a specified value, often associated with finding probabilities in statistical analysis.

Degrees of Freedom

In statistics, the number of independent values or quantities that can be assigned to a statistical distribution.

Distribution Table

A table that displays the frequency of various outcomes in a sample, often used in statistics to organize data.