General Partnership Formation Flashcards
1
Q
Are there any formalities in becoming a general partnership?
A
No.
2
Q
What is a general partnership?
A
A general partnership is an association of two or more persons who are carrying on as co-owerns of a business for-profit.
3
Q
What is the key factor to knowing whether you have a general partnership?
A
Sharing of profits are key. Therefore, the contribution of money (i.e. capital) or services in return for a share of profits is prima facie evidence of a partnership.
