Ask Question
BusinessBusiness
14 December, 05:45

Evidence of sharing profits is prima facie evidence of partnership existence unless the profits are: a. wages or rent. b. not shared equally. c. income. d. all of the above

+2
Answers (1)
  1. 14 December, 07:19
    0
    Answer: A. Wages or rent

    Explanation: A business partnership is an association of two or more people to conduct a business. The partners pool their funds and also partake in profits or losses that might result in running the business. The contract of a partnership that states that one exist could be express or implied, written or oral.

    Generally, the receipt of profits from a business is evidence of a partnership. However, when it is repayment of a debt, wages, rent, or an annuity that is received as a share of profit, such transactions do not lead to a legal inference that a partnership exists since they are considered "protected relationships". Therefore, evidence of sharing profits is prima facie evidence of partnership existence unless the profits are wages or rent.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Evidence of sharing profits is prima facie evidence of partnership existence unless the profits are: a. wages or rent. b. not shared ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of $500 per month. You will charge 1.55 percent per month interest on the overdue balance.
Answers (1)
A company issued 8%, 15-year bonds with a par value of $500,000 that pay interest semiannually. The market rate on the date of issuance was 8%.
Answers (1)
How do you plan to implement career development using internal and external resources?
Answers (1)
The traditional income statement for Pace Company shows sales $900,000, cost of goods sold $600,000, and operating expenses $200,000.
Answers (1)
Net income for the year for Carrie, Inc. was $750,000, but the statement of cash flows reports that net cash provided by operating activities was $860,000. What might account for the difference?
Answers (1)
New Questions in Business
2. Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the a. supply curve for Matthew's pies will increase. b. supply curve for Matthew's pies will decrease. c.
Answers (1)
Suppose Compco Systems pays no dividends but spent $ 5.18 billion on share repurchases last year. If Compco's equity cost of capital is 11.5 % , and if the amount spent on repurchases is expected to grow by 7.
Answers (1)
Commercial paper is very popular with many firms because Multiple Choice it can usually be issued below the prime rate. there are no required lines of credit at the bank. it satisfies the firm's need for long-term funds.
Answers (1)
Andrews Corp. ended the year carrying $33,836,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.?
Answers (1)
The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 6,100 direct labor-hours will be required in May. The variable overhead rate is $8.50 per direct labor-hour.
Answers (1)
Home » Business » Evidence of sharing profits is prima facie evidence of partnership existence unless the profits are: a. wages or rent. b. not shared equally. c. income. d. all of the above
Sign Up Forgot Password?