All of the Following Conditions Must Exist for Partnership by Estoppel

question 14

Multiple Choice

All of the following conditions must exist for partnership by estoppel to exist EXCEPT

• A)one partner agrees not to share in the profits of the enterprise.
• B)participants tell other people they are partners even though they are not.
• C)a third party believes and relies upon the assertion that participants are partners.
• D)a third party suffers harm because he or she believed a partnership existed.

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Definitions:

Average Annual Return

The compound annual growth rate of an investment over a specified period of time.

Fama and French

A multifactored model developed by Eugene Fama and Kenneth French to describe stock returns, incorporating market, size, and value factors among others.

Efficient-Market Hypothesis

A theory that suggests that financial markets fully absorb and reflect all available information, making it impossible to consistently achieve higher returns than the market average.

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