The correct answer is: B. becomes a partner by the operation of law.
A manager with a share in the profits is a partner by the operation of law. This means that the law automatically considers them to be a partner, even if they have not signed a partnership agreement. This is because the law recognizes that a person who has a share in the profits of a business is likely to have a say in how the business is run, and therefore should be considered a partner.
Option A is incorrect because a manager with a share in the profits is not just a servant of the firm. A servant is someone who works for another person and is under their control. A partner, on the other hand, is someone who owns a share in a business and has a say in how it is run.
Option C is incorrect because a manager with a share in the profits does not become a partner by implied agreement. An implied agreement is an agreement that is not explicitly stated, but is implied by the actions of the parties involved. In this case, there is no evidence that the manager and the firm have entered into an implied agreement to become partners.
Option D is incorrect because a manager with a share in the profits does not become a partner from status. Status is a person’s position in society, and it does not affect whether or not they are a partner in a business.