7.Arthur, Betty, and Clara each inherit an undivided one-third interest in an apartment complex. Instead of selling it, they decide to continue to operate it for the next few years as a sideline to their other occupations just to see if they can earn some extra money. What are they

a. Partnership.

b. Co-ownership.

c. Corporation.

d. Creditor of the complex.

8.Marilyn, George, and Christine pool their money to buy land to operate a vegetable farm from which they plan to sell the produce and share the profits or losses. Are they partners?

a. Yes.They are an association to carry on a for profit business which they own.

b. No.Because they each control the use of the land.

c. Yes.Because if there is a loss in the land's value, they will all share that loss.

d. No.They are merely joint venturers.

9.Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business. Jess, a business owner, is personally liable if:

a. He is a sole proprietor of the business.

b. The business is a corporation and he is a shareholder.

c. He committed the tort.

d. He is a general partner of the business.

e. Two of the above (a through d)

f. Three of the above (a through d)

10.Sue, Barb, and Carlotta agree to put in $1,000 each to set up a shelter for lost animals. They each work two days a week. Donations fund the day-to-day operations. Do they have a partnership?

a. Yes, since each has control of the operation.

b. Yes, because they are all co-equals in ownership of the shelter.

c. No, because they have made no formal agreement.

d. No, because there is no business for profit.