Which of the following is TRUE of a written partnership agreement?
A) It is an agreement in which the partners hold a direct agreement with the registration body, and the registration body acts as an interlocutor between the partners.
B) It is an informal agreement between the partners and is not legally binding.
C) It is a legally-binding agreement between the owners which explains the procedures for liquidating the partnership.
D) It is a legally-binding agreement between the proprietors and the stock exchange where it is listed regarding the profit sharing between the owners.

Question

Quizplus · Accepted Answer

A written partnership agreement is a legally-binding agreement between the partners which outlines the terms and conditions of the partnership, including the division of profits, decision-making processes, and procedures for dissolving the partnership. It is a crucial document for any partnership, as it helps to prevent disputes and misunderstandings between the partners. Option A is incorrect, as the partners do not directly interact with the registration body. Option B is incorrect, as a written partnership agreement is a formal and legally-binding document. Option D is also incorrect, as the stock exchange has no role in the partnership agreement.

Which of the Following Is TRUE of a Written Partnership