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Adams was approached by Mr.McCarthy of XYZ Co.,who requested that Adams pay $10 000 to extinguish a debt owed by the partnership of Adams and Jefferson.Adams denied the partnership and the liability.In asserting his claim,McCarthy cited the following facts,all of which he could prove.Which of these facts is the strongest evidence of the existence of a partnership?
Equity Financing
The method of raising capital by selling company shares to investors; in return, the investors receive ownership interests in the company.
Rate of Return
The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.
Debt Financing
Debt Financing involves raising capital through borrowing money that must be repaid over time, with interest.
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