Partnership SLA Page 2

Instructions: Read the fact pattern presented. As you work through the questions, information will be added to the fact pattern, some of which you will need in order to answer further questions. Only a correct answer will allow you to proceed.

Fact pattern

Susan Wright, Charles Thompson and John Dodgson are architects, each of whom has, to date, worked on their own account. They are proposing to pool their resources and operate as a partnership. They believe that various benefits, including economies of scale, will result from doing this. There are a number of issues regarding the formation and operation of a partnership on which they seek your advice.

. At what point will the proposed partnership come into existence?

At the point at which they carry on business in common with a view of profit

When a written partnership agreement is signed

When they commence sharing profits from their business

At the point in time when they agree that, at some point in the future, they will run their business together

When they pool their resources such that they jointly own the property of the new business

Partnership SLA Page 2

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