Asked by Sandra Belgarde on May 05, 2024
Verified
Which of the following examples of sharing of profits could constitute evidence of the existence of a partnership?
A) Pablo, a photographer who sets up photoshoots, gives his friend Olita, who is learning the business, $100 for "helping him out" on the photoshoots.
B) Pablo, a photographer, gives his friend Olita, who owns a building, $500 for letting him use an apartment for his photoshoots.
C) Pablo, a photographer, gives Olita $500 from the fees of a photoshoot, to repay a loan.
D) After Pablo's photography partner dies, Pablo gives Olita, the partner's widow, $100 a month out of respect for Sander.
E) Pablo and Olita, two photographers, split the fees obtained at their photoshoots.
Sharing of Profits
An arrangement where profits earned from a business, investment, or venture are distributed among the stakeholders or partners according to predetermined criteria or an agreed formula.
Photoshoots
involve the process of taking professional photographs, usually of a person, group, or product, often conducted by a photographer in a studio or outdoor location.
Loan Repayment
The act of paying back money previously borrowed from a lender, typically including both the principal and interest.
- Acquire knowledge of the legal rules overseeing partnerships, from their inception through to their operation and eventual dissolution.
Verified Answer
KP
Khushi PatelMay 08, 2024
Final Answer :
E
Explanation :
E) indicates a sharing of profits derived from a mutual business activity, which is a key indicator of a partnership.
Learning Objectives
- Acquire knowledge of the legal rules overseeing partnerships, from their inception through to their operation and eventual dissolution.