need help with accounting

Accounting
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Articles of partnership
A. are required to form a partnership by federal law.
    
B. are a formal written agreement that states the partners’ relationship.
    
C. may be an oral agreement.

My answer is B

May 5th, 2015

B is correct.  Articles of partnership is a formal written agreement that states the partners' relationship including percentage of ownership in the business (which also is important for liability purposes, how much did each person invest and what % of the business does that give them).  Remember if you have 3 partners, each with 33% of the business, it takes 2 of the 3 (66%) to be a majority and to take over the business if the 3rd partner is not doing their part.  Either the other 2 can buy out the 3rd or the 3rd can give up the rights/investment/business debt, and divide it equally among the other two (making the remaining partners equal partners 50-50).

May 5th, 2015

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May 5th, 2015
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