Which of the following practices raises a presumption of the existence of a partnership?

Sharing profits among partners is a key practice that raises a presumption of the existence of a partnership. In partnership law, one of the fundamental criteria for establishing a partnership is the sharing of profits. The Uniform Partnership Act and many state laws recognize that the distribution of profits implies that the individuals involved are engaged in a business venture together with a mutual interest in profit.

When individuals share profits, it suggests that they are collaborating and contributing resources or efforts towards a common goal, which is a primary characteristic of a partnership. This presumption can be significant in legal contexts because it simplifies the determination of partnership existence. If profits are being shared, the law typically infers that an agreement (either express or implied) exists between the parties to operate as partners in a business.

On the other hand, practices such as sharing expenses, paying wages to employees, or paying rent primarily reflect transactional relationships rather than a partnership. Sharing expenses may occur in various contexts that do not imply a partnership, and compensation methods, such as wages or rent payments, suggest employer-employee or landlord-tenant relationships rather than a partnership dynamic. Therefore, these actions would not create the same presumption of partnership existence as sharing profits would.