Wade Comer and Tom Busby Decide to Start a Partnership

question 102

Multiple Choice

Wade Comer and Tom Busby decide to start a partnership and offer accounting services. Which of the following is the best way to start this partnership?

• A) They should orally discuss how they want the partnership to work and who is responsible for certain areas.
• B) They should determine the exact way the business should be run and have a witness listen to their oral discussion.
• C) They should let a third party, such as a consultant or an attorney, draft whatever agreement the consultant or attorney thinks is appropriate.
• D) They should carefully draft an articles of partnership together, outlining each partner's responsibilities and other important information.
• E) With the help of an attorney, they should draft a partnership agreement that states each partner's duties and investments.

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Definitions:

Situation Analysis

An assessment of an organization's current situation, identifying its strengths, weaknesses, opportunities, and threats to inform strategic planning.

Competitive Advantages

Refers to the attributes that allow a company to produce goods or services better or more cheaply than its rivals, thus providing a superior value to the customer and a benefit over competitors.

Mission Statement

A brief declaration of an organization's core purpose and focus that usually remains unchanged over time.

Narrow Mission

A clearly defined and focused organizational purpose that guides actions and decision-making.