Jessica Had Operated a Business for Several Years

question 58

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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