Mike Hill and Larry Wright decide to start a partnership and offer accounting services.Which of the following is the best way to start this partnership?
A) They should orally discuss how they want the partnership to work and who is responsible for certain areas.
B) They should determine the exact way the business should be run and have a witness listen to their oral discussion.
C) They should let a third party,such as a consultant or an attorney,draft whatever agreement the consultant or attorney thinks is appropriate.
D) They should carefully draft an articles of partnership together,outlining each partner's responsibilities and other important information.
E) With the help of an attorney,they should draft a partnership agreement that states each partner's duties and investments.

Question

Quizplus · Accepted Answer

The best way to start this partnership is by drafting a partnership agreement with the help of an attorney. This agreement should clearly state each partner's duties and investments, as well as other important information. This will ensure that both partners are on the same page and will minimize the risk of disputes arising later on. Option E is the best choice because it offers legal protection and helps to establish a clear understanding of the terms of the partnership.

Mike Hill and Larry Wright Decide to Start a Partnership