Partnership - General formation Flashcards
1
Q
What is formally required to form a partnership?
A
Nothing.
2
Q
What is the definition of a partnership?
A
An association of two or more persons who are carrying on as co-owners of a business for profit.
3
Q
What is the key factor of determining whether a partnership exists?
A
Sharing of profits is the key factor. Therefore, the contribution of money or capital or services in return for a share of profits creates the presumption that a general partnership exists.
