Articles of Partnership Are Required by Many States for Businesses

question 36

Multiple Choice

Articles of partnership are required by many states for businesses that have two or more co-owners.The issues covered usually include all of the following except

• A) a statement of what each partner contributes.
• B) how the profits and losses will be divided.
• C) what duties the partners will have.
• D) provisions for leaving the partnership.
• E) classes of stock to be issued.

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Definitions:

Grandfather Clause

A legal or constitutional mechanism used to exempt certain individuals, typically white people, from new laws or regulations based on ancestry or previous rights, often to bypass laws aimed at racial equality.

Brandeis Brief

A legal argument that emphasizes social science research and factual information over strict legal citations, named after Justice Louis Brandeis who famously used it in early 20th-century U.S. labor law cases.

Efficiency

The ratio of the useful output of a system to the input, often used to describe the productivity and performance of machines, processes, and systems.