Question $12(1\mathrm{.}71$ points$)$

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Yami and Haneen want to go into business together and plan on offering a tutoring service to high school and college students. Yami proposes that they share control of the business and split profits equally and not bother with a written agreement. Yami says their personal assets are not in danger with his proposal because they are a business. Is Yami correct that with this proposal that because they share control of the business and split profits equally, they will not have any personal liability for debts?

Yes, Yami is correct so long as they do not reach an agreement in writing.

No$,$ Yami is incorrect because members of the corporate form chosen would be personally liable for debt.

Yes, Yami is correct because they will be considered a partnership regardless of whether any agreement is in writing.

No$,$ Yami is incorrect because partners have personal liability for debt.

Yes, because so long as they have nothing in writing, their arrangement will be considered a joint venture.