Three independent sole proprietors decided to pool their resources and form a partnership. The business assets and liabilities of each were transferred to the partnership. The partnership commenced business on September 1, but the parties did not execute a formal partnership agreement until October 15. Which of the following is true?
A. The existing creditors must consent to the transfer of the individual business assets to the partnership.
B. The partnership began its existence on September 1.
C. If the partnership's duration is indefinite, the partnership agreement must be in writing and signed.
D. In the absence of a partnership agreement specifically covering division of losses among the partners, they will be deemed to share them in accordance with their capital contributions.
Answer: B. The partnership began its existence on September 1.
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