Partnership Can Function as an Efficient Organizational Form When Partners

question 37

True/False

Partnership can function as an efficient organizational form when partners have similar backgrounds and skills, and each of their income is largely determined by individual effort.

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Definitions:

Charter Issued

The granting of legal authorization or a set of rights and privileges from a government or authority to create and operate an organization.

Incorporator

An individual or entity that establishes and files the legal documentation required to form and register a corporation.

Articles of Incorporation

A document filed with a state government to legally document the creation of a corporation.

Corporation

A legal entity that is separate and distinct from its owners, which can enter into contracts, own assets, sue and be sued.