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Three clients decide to go into business together. They each invest equal amounts of capital in the business, and agree to share the profits equally. After two years, the business has made a loss and the clients no longer believe the business is viable.
Have the three clients been working in partnership together?
A. Yes, because they are in business together and intended to make a profit even though they have made a loss.
B. Yes, because they agreed to invest equal amounts of capital in the business.
C. No, because they have not entered into a written partnership agreement.
D. No, because they have not registered themselves as a partnership.
E. No, because they agreed to share profits equally but did not agree how to share losses between them.
A - Yes, because they are in business together and intended to make a profit even though they have made a loss.
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