| Scenario | Inputs acquired include an organized workforce? | Asset or business? |
Scenario 1 | Purchaser take over property management | No | Asset |
Scenario 2 | Purchaser and seller form a general partnership to manage the property and the partnership is controlled by the purchaser or under common control | No | Asset |
Scenario 3 | Purchaser and seller signs an outsourced property management contract and the contract has finite during, or seller can be easily replaced | No | Asset |
Scenario 4 | Purchaser and seller signs an outsourced property management contract and it is unlikely that seller will be replaced | Yes | Business |
Scenario 5 | Seller remain the property management role | Yes | Business (consider whether the purchaser has power over the investee) |