need help with accounting

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

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

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
May 5th, 2015
...
May 5th, 2015
Oct 18th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer