106k views
1 vote
there is a saying it is always to have a written agreement for panership business. keeping in view this statement it is always advisable for a patner to have a written agreement. What is the name of this agreement and what are its content in general? (100-150 words)

User Boris Smus
by
7.8k points

1 Answer

6 votes
This is known as an operating agreement/ partnership agreement; in many states, new companies are required to make one by law. It states each partner's roles and contributions to the company, and how roles are divided. This details how decisions are made, where the capital investment or contributions come from (or how they will be sourced), the distribution of profit and salaries attached, where the partner roles will go to in the event of death or inability to perform duties, as well as the dissolution and exit strategies in the event the business needs to close.
User Dasony
by
9.0k points