Which of the following statements regarding partnerships is true?
A) When forming a partnership, a formal partnership agreement should be drawn up with the help of an attorney.
B) Unlike other forms of ownership, a partnership has a legal life of its own.
C) A disadvantage of a partnership is the limited liability of the partners.
D) A partnership is an incorporated business owned by two or more people.
E) Partnerships often dissolve within two years.

Question

Quizplus · Accepted Answer

It is true that when forming a partnership, a formal partnership agreement should be drawn up with the help of an attorney to outline the rights and responsibilities of the partners, how profits and losses will be divided, and procedures for dissolving the partnership.

Which of the Following Statements Regarding Partnerships Is True