When Entering into a New Partnership,the Partners Should

question 143

Multiple Choice

When entering into a new partnership,the partners should:

• A)avoid putting their agreement in writing since this would limit the flexibility of the partnership.
• B)put the partnership agreement in writing.
• C)plan to incorporate as soon as possible.
• D)agree to put the first year's profits back into the partnership.

---

Definitions:

Financial Broker

A professional who serves as an intermediary between a buyer and seller of financial securities, offering investment advice and executing transactions.

Management Broker

An intermediary who manages the buying and selling of businesses, or the provision of management resources to those businesses.

Bank Audits

A thorough examination of a bank's records and financial statements to ensure accuracy, compliance with regulations, and soundness of financial practices.

Short Run

A period during which at least one factor of production is considered fixed and cannot be varied.