When entering into a new partnership, a good strategy is to
A) avoid putting the agreement in writing since this would limit the flexibility of the partnership.
B) put the partnership agreement in writing.
C) plan to incorporate as soon as possible.
D) agree to put the first year's profits back into the partnership.

Question

Quizplus · Accepted Answer

Putting the partnership agreement in writing is essential for establishing clear expectations, responsibilities, and boundaries between partners. This can help prevent misunderstandings and conflicts down the line. Avoiding a written agreement may seem more flexible, but it also leaves the partnership more vulnerable to disputes and disagreements. Incorporation and profit-sharing are separate issues that may or may not be relevant depending on the specific circumstances of the partnership.

When Entering into a New Partnership, a Good Strategy Is