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if a person receives a share of the profits of a business, it is assumed he/she is a partner. true or false

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It is a false statement that if a person receives a share of the profits of a business, it is assumed he/she is a partner.

Partnerships are formalized through legal agreements such as partnership deeds or contracts which outline the roles, responsibilities and liabilities of each partner. These agreements go beyond profit-sharing and encompass various aspects of the business relationship.

In some cases, individuals may receive a share of profits without being considered partners. For instance, an employee might be entitled to a bonus based on company profits or an investor might receive a portion of the profits in return for providing capital to the business. These arrangements do not necessarily confer partnership status.

Therefore, the assumption that receiving a share of the profits of a business automatically makes someone a partner is not universally true.

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