Which of the Following Is the Proper Definition of a Partnership

question 17

Multiple Choice

Which of the following is the proper definition of a partnership as set out in the Partnership Act?

• A) A partnership exists only where two or more people enter into a written agreement to be partners.
• B) A partnership exists where any business is carried on with a view towards profits.
• C) Partnership exists where two or more persons carry on business together with a view towards profits.
• D) A partnership is only created where the partners actually share the profits from a business.
• E) A partnership is created where a corporation with shareholders is registered with the federal government.

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Definitions:

Testamentary Trust

A trust that is created according to the instructions left in a deceased person's will and goes into effect upon their death.

Died Intestate

The situation where a person passes away without having made a legal will.

Personal Representative

A personal representative is an individual appointed to administer the estate of a deceased person, managing and distributing the estate's assets according to the will or, if there is no will, in accordance with state laws.

Administrator

The personal representative appointed by a probate court to settle the estate of a deceased person who died intestate (without leaving a valid will).