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Which correctly distinguishes partnership from co-ownership?
ACo-ownership always involves sharing of profits and losses
BPartnership can arise by inheritance
CPartnership arises from contract and a partner is an agent of the others, whereas co-ownership may arise by law and a co-owner is not an agent
DA co-owner cannot transfer his interest without consent
Answer & Solution
Correct answer: C. Partnership arises from contract and a partner is an agent of the others, whereas co-ownership may arise by law and a co-owner is not an agent
Partnership arises only from agreement and involves mutual agency and sharing of profits/losses; co-ownership may arise by operation of law, lacks agency, and need not involve sharing of profits.
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