Lorraine, Maureen, and Claudette entered into a verbal agreement to open a law firm together. The women prepared an agreement outlining their respective contributions to the business and the ratio in which profit and losses will be shared. They have also agreed that 5% will be charged on drawings and 10% interest on the capital invested.

Identify the relationship that exists among the three business partners and briefly discuss at least five characteristics of the formation of such business organization?