A partnership agreement should include
A)the method of allocating profits.
B)investments of each partner.
C)procedures for admitting partners.
D)All of these choices.

Question

Quizplus · Accepted Answer

All of these choices (A, B, and C) should be included in a partnership agreement. The method of allocating profits is important to establish how the business income will be distributed among the partners. The investments of each partner should also be outlined to clarify how much each partner has contributed to the business. Procedures for admitting partners should also be established to ensure that new partners are brought into the business fairly and with clear expectations. Therefore, all of these choices should be included in a partnership agreement.

A Partnership Agreement Should Include