In Which One of the Following Situations Will a Court

question 60

Multiple Choice

In which one of the following situations will a court find that a partnership exists?

• A) Joe and Mary, while in college, purchase a house and share the profits from the rent after deducting expenses.
• B) Joe is a partner in a shoe store and sells his share of the business to Harry without the consent of his partner.
• C) Joe and Mary promote several dances at school and split the profits.
• D) Joe, a partner in a law firm, dies and Joe's widow takes over Joe's share of the profits.
• E) Joe sells his business to Harry for $10,000 for the assets and a further $20,000 for good will, the good will portion to be paid at a rate of 20% of the profits from the business until paid.

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Definitions:

Self-fulfilling Prophecy

A phenomenon where an initially inaccurate expectation leads to actions that cause the expectation to come true, thereby confirming its own accuracy.

Outcome Expectancy

An individual's belief about the likelihood that a specific behavior or action will lead to a particular outcome.

Optimistic Bias

The tendency to believe that one is less likely to experience negative events and more likely to experience positive events compared to others.

Pessimistic Bias

The tendency to overestimate the likelihood of negative outcomes or events happening in the future.