Multiple choice

The essential elements of a partnership

  1. must coexist before a partnership can come into existence

  2. may be brought in within a reasonable time of a partnership coming into existence

  3. may be brought in any time either during the creation of partnership or even thereafter

  4. may not coexist before a partnership can come into existence, but they must coexist within one year of a partnership coming into existence

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The essential elements of a partnership - agreement between partners, carrying on a business, sharing of profits, and mutual agency - must all exist at the time the partnership is formed. A partnership cannot come into existence without these elements being present from the outset. Option B incorrectly suggests these can be added later, while option C implies an even more flexible timeline that contradicts the requirement that all elements must coexist for a valid partnership to exist.