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

question 57

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 loses.