Edie, Tariq and Jermaine became close friends while pursuing their MBA. After graduation, they decided to jointly pursue a business venture for the development and marketing of advanced wind turbine technology. They verbally agree that each will make an initial contribution of $50,000 and share equally in the profits and losses of the business. They also agree that Edie will focus on the day to day administration of the business venture, Tariq on developing the technology, and Jermaine on obtaining third party financing. They will each have access to all relevant business information, and all business decisions must be unanimous.

Their joint business venture is legally a Partnership.

True / False [1 mark]

Briefly explain your answer [2 marks]