Which of the following statements is true of formation of general partnerships?
A) It is safer to get everything in writing and to seek expert legal assistance when drawing up an agreement.
B) It is legally not possible to start a partnership on the basis of a verbal agreement.
C) There is a limit on the number of partners who can participate in a general partnership.
D) A general partnership is formed when partners enter into an involuntary partnership agreement.

Question

Quizplus · Accepted Answer

It is important to have a formal written agreement in place to avoid misunderstandings and disputes later on. Seeking legal assistance can also ensure that the partnership agreement is legally binding and covers all necessary aspects such as profit sharing, roles and responsibilities, and dispute resolution mechanisms.

Which of the Following Statements Is True of Formation of General