Which of the following arrangements is most likely to be a partnership under the Partnership Act 1890?

Correct answer: A) Kofi and Lena run a catering business together, making decisions jointly and sharing the net profits

Explanation

Section 1 defines partnership as the relation which subsists between persons carrying on a business in common with a view of profit. Kofi and Lena carry on a business together and share its net profits, which is strong evidence of partnership (s2(3)). Co-ownership of property does not of itself create a partnership, even where the income from it is shared (s2(1)). A loan at a rate varying with profits, and an employee's pay by a share of profits, do not of themselves make the lender or employee a partner (s2(3)(b) and (d)).