Abe and Carlos Want to Form a General Partnership

question 57

Multiple Choice

Abe and Carlos want to form a general partnership.What must they do in order to create this legal form of business?

• A)They must get a partnership license from the secretary of state.
• B)They must sign a written agreement and file it with the secretary of state.
• C)They must first orally agree to become partners and then formulate a contract.
• D)They can start a partnership without any formalities.

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Definitions:

Centralisation

Centralisation is the concentration of authority for most decisions at the top level of an organisation.

Functional Authority

The right granted to individuals or departments to make decisions and issue directives within a specific area of expertise.

Subsystems Design

The process of designing parts of a system that can function independently but contribute to the overall performance and objectives of the whole system.

Paul Lawrence

An identifiable individual but without a specific definition without context, likely refers to a person of note in a specific field.