Raigon and Sharon run a café that opens from 6am to 8am every day at the train station. Their responsibilities for running the café are shared equally, and all proceeds are donated to charity (after paying their business expenses). Which of the following statements is most likely CORRECT? Select one: a. Raigon and Sharon are not in a partnership since they reinvest their profit for charity. b. Raigon and Sharon are not in a partnership because they do not share their expenses equally. c. Raigon and Sharon are in a partnership since they run the café with a sharing of responsibilities. d. Raigon and Sharon are in a partnership since they run the café regularly.
Question
Raigon and Sharon run a café that opens from 6am to 8am every day at the train station. Their responsibilities for running the café are shared equally, and all proceeds are donated to charity (after paying their business expenses). Which of the following statements is most likely CORRECT?
Select one:
a. Raigon and Sharon are not in a partnership since they reinvest their profit for charity.
b. Raigon and Sharon are not in a partnership because they do not share their expenses equally.
c. Raigon and Sharon are in a partnership since they run the café with a sharing of responsibilities.
d. Raigon and Sharon are in a partnership since they run the café regularly.
Solution
The most likely correct statement is:
c. Raigon and Sharon are in a partnership since they run the café with a sharing of responsibilities.
This is because a partnership is defined as a business arrangement where two or more individuals share the responsibilities, costs, profits, and losses of a business. The fact that Raigon and Sharon share the responsibilities of running the café equally suggests that they are in a partnership. The use of the profits (in this case, donating to charity) does not affect the nature of their business arrangement.
Similar Questions
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