Chuck,Howard,and Ben Decide to Start a Business Venture,developing and Distributing

Multiple Choice

Chuck,Howard,and Ben decide to start a business venture,developing and distributing educational software.For tax reasons,they do not incorporate.Each contributes $10 000,and Howard also contributes a truck and his programming expertise.They agree that all three will be actively involved in the day-to-day management of the business.To determine their rights and obligations,they enter into a one-page agreement that provides only that each of Chuck,Howard,and Ben will receive 33.3% of the profits but also states specifically they are not to be viewed as partners.Based on these facts,which of the following statements is true?

A) Chuck,Howard,and Ben will not be considered partners because of their express intention in their agreement.
B) Chuck,Howard,and Ben will be considered partners in the eyes of the law,because they share profits and are involved in the management of the business.
C) Chuck,Howard,and Ben will be considered partners,but someone claiming against the partnership will only be able to collect 33.3% from any one partner because of the agreement.
D) Chuck,Howard,and Ben are not partners because they do not share profits in proportion to their capital contributions.
E) Chuck,Howard,and Ben are not partners because to be partners they must be professionals,such as dentists,lawyers,or doctors.