General Partnership Formation Flashcards
1
Q
What is a general partnership?
A
An “association” of 2 or more persons who are carrying on as co-owners of a business for profit (not salary or commission)
2
Q
What is necessary to establish a general partnership?
A
There are no formalities to becoming a general partnership
Note: sharing profits is key. Therefore, the contribution of money or services in return for a share of profits is a prima facie evidence of a general partnership. Not in return for salary, commission, etc. (not salary, commission) is prima facie evidence of a general partnership.
