A key characteristic of a partnership is that each partner

Question

Quizplus · Accepted Answer

Each partner in a partnership has the legal capacity to contract on behalf of the partnership, meaning they can enter into agreements with other parties and make decisions for the company. This is a key characteristic of a partnership. While A is also true to some extent (partners generally contribute capital to the business), it is not a defining characteristic of a partnership. B is true, but only applies upon dissolution of the partnership. D is not necessarily true - while partners may choose to participate in management, it is not a requirement.

A Key Characteristic of a Partnership Is That Each Partner