In which of the following cases is there prima facie evidence that one is a partner in a business?

Prepare for your Partnership and Corporation Exam with engaging flashcards and multiple-choice questions. Each question comes with hints and detailed explanations. Boost your confidence and ace the exam!

A person can be considered a partner by virtue of their financial participation in a business. Specifically, receiving a share of net profits from a business serves as prima facie evidence of partnership. This is because partnerships are primarily characterized by sharing profits and losses. When someone receives a share of net profits, it implies they are engaged in the business's operations and are likely to be accountable to other partners or entities involved in the business.

In contrast, the other scenarios do not necessarily indicate a partnership. For instance, receiving a share in gross returns or a share of profits from co-owned property might relate more to ownership and investment rather than the operational structure of a partnership. Similarly, sharing profits from joint possession of property might indicate joint ownership or a different type of business arrangement, but it does not inherently convey the organized partnership relationships specified by the law. Therefore, the specific mention of net profits in the correct answer aligns directly with the legal definition and presumptions surrounding partnership involvement.

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