A Partnership Agreement

question 26

Multiple Choice

A partnership agreement

• A)must be in writing to be enforceable.
• B)is governed exclusively by the terms of the Partnership Act which terms the partners cannot deviate from.
• C)may be wholly oral and yet valid and enforceable.
• D)must be reviewed by legal counsel retained by each partner.
• E)cannot be drafted by the individual partners because many are novices and unaware of business pitfalls.

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Definitions:

Statistical Safety Stock

The level of extra inventory a company holds to protect against uncertainties in demand or supply.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points relative to its mean.

Service Level

A measure of the quality and performance of a service, often reflecting the degree to which customer expectations are met.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out those values are from the mean.