To prevent problems that may arise when a partner dies or withdraws from a partnership, the articles of partnership should include a(n):
A) buy and sell agreement.
B) escrow instruction.
C) dissolution contract.
D) purchase contract.
E) interest agreement.

Question

Quizplus · Accepted Answer

To prevent problems that may arise when a partner dies or withdraws from a partnership, the articles of partnership should include a buy and sell agreement. This agreement, which should be entered into when the business entity is created, provides for the amount and manner of compensation for the interest of the deceased or withdrawing owner.

To Prevent Problems That May Arise When a Partner Dies