Multiple choice

x and y jointly acquired a grocery shop and incurred additional expenses for purchasing furniture for the business, contributing required money equally. They leased out the shop on rent which was shared equally. In this situation, X and y are coowners and not partners since they never carried on any business.

  1. True

  2. False

  3. Partly true

  4. Cannot say
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For a partnership to exist, there must be a business being carried on. Merely co-owning property and earning rental income does not constitute partnership. X and Y are co-owners, not partners, because they only lease out the property rather than actively conducting business activities.

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