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Under Section 6, the receipt by a lender of money of a share of profits of a business:
AAutomatically makes him a partner
BDoes not by itself make him a partner with those carrying on the business
CMakes him liable as a nominal partner
DMakes him a partner if he lent over half the capital
Answer & Solution
Correct answer: B. Does not by itself make him a partner with those carrying on the business
Section 6 clarifies that a share of profits received by a lender, servant, widow of a deceased partner, or seller of goodwill does not of itself create a partnership; mutual agency must be shown.
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