Asked by
Christina Volta
on Nov 10, 2024
Verified
Which of the following is the proper definition of a partnership as set out in the Partnership Act?
A) Partnership exists where two or more persons carry on business together with a view towards profits.
B) A partnership exists where any business is carried on with a view towards profits.
C) A partnership is created where a corporation with shareholders is registered with the federal government.
D) A partnership is only created where the partners actually share the profits from a business.
E) A partnership exists only where two or more people enter into a written agreement to be partners.
Partnership Act
Legislation that outlines the rights and responsibilities of partners in a business partnership.
Profits
The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs associated with sustaining the operations.
Carrying On Business
The ongoing conduct of commercial activities with some degree of regularity or continuity for profit.
- Comprehend the legal delineations and requirements for forming a partnership as per the Partnership Act.
Verified Answer
AH
Learning Objectives
- Comprehend the legal delineations and requirements for forming a partnership as per the Partnership Act.