Which statement about creating a general partnership is true?

• A. A written partnership agreement is required.
• B. Intent to form is required.
• C. Joint ownership of property alone creates a partnership.
• D. A partner who receives a share of profits is presumed to be a partner unless payments for debt, wages, rent, or other specified.

Answer: (D)

The main idea is that a general partnership can form through the conduct of the parties, not just through a formal agreement. A key rule is that sharing profits in a business is strong evidence that people are partners, because profit-sharing typically accompanies joint ownership and management of the venture. But this presumption is rebuttable: if the profits are payments for debts, wages, rent, or other compensation to someone who isn’t a partner, that can show the arrangement isn’t a partnership.

So the statement that a person who receives a share of profits is presumed to be a partner—unless those profits are payments for debt, wages, rent, or other specified compensation—best captures how profit-sharing functions as evidence of partnership while recognizing the important exceptions.

Why the other ideas don’t fit as the true statement: a written partnership agreement isn’t required because partnerships can form orally or by conduct; intent to form isn’t necessary because formation can occur through actions and profit-sharing even without a stated intent; and joint ownership of property alone isn’t enough to create a partnership since there must be a business carried on for profit with some degree of shared management and profits.