Which One of the Following Situations Will Result in a Partnership

question 176

Multiple Choice

Which one of the following situations will result in a partnership existing? Assume no corporation has been created.

• A) Joe and Mary own a house together and share the income from it.
• B) Joe pays back a debt to Harry by giving Harry a percentage of the profits from his business.
• C) Joe and Mary own a shoe store business together and share the profits.
• D) Employees are given bonuses because of increased profits.
• E) A lawyer and a real estate agent split the commission.

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Definitions:

Wholesalers

Companies or individuals that purchase large quantities of goods from manufacturers to resell them to retailers or other buyers.

B2B Relationship

Business-to-business relationship, which involves transactions, communications, or partnerships between two companies rather than between a company and individual consumers.

Hospitalized

The condition of being admitted to a hospital for treatment, observation, or recovery from illness, injury, or other medical conditions.

Buying and Selling

The basic components of commerce, where goods or services are purchased by buyers from sellers in exchange for money.