Regarding the Formation of a General Partnership,which of the Following

question 53

Multiple Choice

Regarding the formation of a general partnership,which of the following is not a legal requirement but has been described as "highly desirable"?

• A)A formal,written partnership agreement
• B)An oral agreement
• C)An exchange of mutual consideration
• D)An agreement limiting the liability of the partners

---

Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its expected useful life, reflecting its consumption, wear and tear, or obsolescence.

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense over its useful life, reducing its book value on the balance sheet.

Asset

Tangible or intangible items of value owned or controlled by a person or company, capable of producing future economic benefits.