A good reason why partners should spell-out the details of their partnership arrangements in writing is:
A)The partnership is not a legally recognized business unless they do so.
B)A written agreement will help reduce misunderstandings and disagreements among the partners.
C)Putting the agreement in writing will limit the liability of each partner to a specified level.
D)Doing so will make it easier to convert the business to a corporation at a later date.

Question

Quizplus · Accepted Answer

A written agreement can help avoid ambiguities and misunderstandings, thus reducing the chances of disagreements among partners. This can be especially helpful if conflicts arise in the future or if the partners need to refer to the terms of their agreement. While a written partnership agreement is not a legal requirement, it is highly recommended to ensure that all parties are on the same page and to protect everyone's interests.

A Good Reason Why Partners Should Spell-Out the Details of Their