Asked by
gurmeet takhar
on Nov 10, 2024
Verified
Which of the following is incorrect with respect to the creation of a partnership?
A) An important indication as to whether a partnership exists is the sharing of the profits of the business activity.
B) The business activity must be continuing in order for it to indicate the existence of a partnership.
C) A partnership can only be created with the consent of the parties.
D) The common method of creating a partnership is by agreement.
E) The duties and obligations of partners to each other can be modified by agreement.
Continuing Business
An ongoing enterprise that maintains its operations over time, adapting to changes as necessary to remain viable.
Consent
Agreement or permission for something to happen, given by someone with full understanding of what is involved.
Modified
Changed or adjusted from the original form, purpose, or condition.
- Determine the circumstances that lead to the formation of a partnership, encompassing terms that are inferred and the significance of agreement.
Verified Answer
AR
Learning Objectives
- Determine the circumstances that lead to the formation of a partnership, encompassing terms that are inferred and the significance of agreement.