Adekunle and Adebisi, who are brothers, pooled their money and bought a red Mercedes Benz car.

On the 25th of February 2020. The brothers found that many people loved the car and often asked

to borrow it for special occasions. The duo decided they could take advantage of this and decided

to lease the vehicle. Leasing the Mercedes Benz car became such a lucrative enterprise that they

borrowed money from a bank and bought a second car, a Honda Accord, for the same purpose.

They titled the car leasing business "K&A Lagos Tour." Because things were going so well,

Adekunle and Adebisi agreed to operate their business together for the next five years. They also

agreed that they would pay for all costs associated with the operation of the business and divide

what was left equally. Three months after they made this agreement, Adekunle was killed in a

traffic accident while driving the Honda car. Adebisi made a claim with the business's insurance

company for the value of the Honda car. Shortly thereafter, a cheque for the loss of the vehicle was

sent to Adebisi. Adekunle's widow, however, believes that the insurance funds belong to her since

it was her husband that died.

(i) How are partnership created?

(ii) Explain the concept of conducting a business "in common".

(iii) Explain the relevance of profit sharing in determining the existence of a partnership.

(iv) Describe and define what kind of business relationship Adekule and Adebisi

established.

(v) As a result of Adekunle's death, what should happen to the red Mercedes benz car,

the debt to the bank, the insurance proceeds, and any cash from the operation of the

K&A Lagos Tour?

(vi) What becomes of the business as a result of Adekunle's death?

(vii) Advice Adekunle's widow on whether she is entitle to the insurance claim.