Probably the Most Important Reason to Have a Partnership Agreement

question 34

Multiple Choice

Probably the most important reason to have a partnership agreement is that ________.

• A)it identifies the name of the partnership and protects that name from infringement by others
• B)it states the location and the purpose of the business
• C)it determines how the partnership and the partners will pay taxes
• D)it resolves potential sources of conflict that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business

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Definitions:

Task Conflicts

Disagreements among individuals about the content and outcomes of the task being performed.

Nature

The inherent characteristics or basic essence of an individual or thing, or the physical world collectively, including plants, animals, landscapes, and other features and products of the earth.

Work Done

The amount of effort or output produced within a given time frame, often measured in terms of project completion or tasks achieved.

Relationship Conflict

Tensions, disagreements, or disputes arising from personal differences and affecting interpersonal connections within groups or teams.