Jessica Had Operated a Business for Several Years

Multiple Choice

Jessica had operated a business for several years. Because the number of customers increased significantly, she persuaded Zach to work together with her. Two years after Zach came aboard, Jessica committed a tort, while acting in the course of the business and caused a customer to suffer a substantial loss. A question has arisen as to whether Zach and Jessica were partners. Which of the following statements is TRUE?

A) because Zach and Jessica were working together, he is liable for her tort even if they were not formally partners
B) a partnership cannot exist unless the business holds property apart from both Jessica and Zach
C) Zach will be considered a partner as long as he was paid for his services out of the business's profits
D) the parties' business organization cannot be a partnership if the business was losing money with the result that there were no profits to share
E) a partnership may exist even if Zach and Jessica signed a document that expressly said that their relationship was not a partnership