Which of the following best describes the term 'partnership by estoppel'?
Practice Questions
1 question
Q1
Which of the following best describes the term 'partnership by estoppel'?
A partnership formed without a formal agreement
A partnership that is legally recognized despite not meeting all legal requirements
A partnership that is dissolved due to one partner's actions
A partnership that is formed only for tax benefits
Partnership by estoppel occurs when a person represents themselves as a partner, leading others to believe they are part of the partnership, thus creating legal recognition.
Questions & Step-by-step Solutions
1 item
Q
Q: Which of the following best describes the term 'partnership by estoppel'?
Solution: Partnership by estoppel occurs when a person represents themselves as a partner, leading others to believe they are part of the partnership, thus creating legal recognition.
