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 major drawback of a partnership is the potential for disagreements among the partners. Spelling out the agreement in writing is a way to protect all parties and minimize misunderstandings.

A Good Reason Why Partners Should Spell Out the Details