MENU
Which of the following requirements must be met to have a valid partnership exist?
I Co-ownership of all property used in a business.
II Co-ownership of a business for profit.
Suggested Answer: B
Get Premium CPA-Business Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
Choice "b" is correct.
Rule: A partnership is defined as an association of two or more persons who agree to carry on as coowners a business for profit. Thus, II is necessary. However, there is no requirement that all property used in the business be co-owned; it may be owned by individual partners. Thus I is not necessary.
Choices "a", "c", and "d" are incorrect, per the above rule.
9 comments · newest first
GU
Gussie
11 months ago
I always thought co-ownership of property was essential too.
JU
Justa
12 months ago
Wait, are you sure about that? Sounds a bit off.
LI
Lili
12 months ago
Actually, II alone could suffice in some cases.
EV
Evelynn
12 months ago
Totally agree, co-ownership is key!
JE
Jess
1 year ago
I think both I and II are needed for a valid partnership.
ME
Melissa
1 year ago
Hmm, I'm a bit confused about the distinction between the all_, dba_, and useb_ views. I'll need to review my notes on the data dictionary to make sure I understand which one displays what information.
JO
Joesph
1 year ago
Hmm, I'm not sure about this one. I'll need to think it through carefully.
DY
Dyan
1 year ago
Okay, I've got this. The key is to identify which characteristic is not true of the program management principles.
CU
Curtis
1 year ago
Hmm, this seems like a tricky one. I'll need to think through the different options carefully.