Question

A partnership is created:a

a)If the managing partner files appopriate papers with the secretary of state.
b)If two or more persons or entities engage in an ongoing business activity for profit.
c)Upon the issuance of stock to the partners.
d)Once there is a valid partnership agreement.

I think it is b, because two person get together and make a entity for business. what is your idea?

ya i think ur right

Answer 1

[AI-generated answer — Explain Bot]

Yes, you are correct. Option b) states that a partnership is created when two or more persons or entities engage in an ongoing business activity for profit. This means that when individuals or entities come together with the intention of running a business together and making a profit, a partnership is formed. The key here is the ongoing business activity for profit. So, as long as there is a clear intention to carry out business activities and make a profit, a partnership can be considered to have been created.