In order to avoid later disputes it is desirable that a partnership agreement:

Question

Quizplus · Accepted Answer

A written partnership agreement helps to avoid later disputes by clearly outlining the terms and conditions of the partnership, such as the roles and responsibilities of each partner, the distribution of profits and losses, decision-making processes, etc. This way, if any issues arise in the future, the partners can refer back to the agreement to resolve them. Therefore, A is the best choice.

B) is not necessarily true - profits and losses can be shared unequally depending on the agreement between partners.

C) is not required as partnerships are not separate legal entities, unlike corporations.

D) is important, but not as crucial as having a written agreement in the first place.

In Order to Avoid Later Disputes It Is Desirable That