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A partnership agreement need not discuss:

A) Division of profits.

B) How partners extract their capital contribution upon withdrawal from the firm.

C) Duties of members of the firm.

D) Division and payment of tax obligation.

E) None of these need to be in the partnership agreement.

User Almeynman
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Final answer:

The division and payment of tax obligation is not required to be detailed in a partnership agreement. These agreements typically include terms for the division of profits, partner capital withdrawal, and member duties, but tax obligations are governed by tax laws. Option c.

Step-by-step explanation:

The question pertains to what does not necessarily need to be included in a partnership agreement. Legally, there is no requirement to discuss the (c) division and payment of tax obligation within the partnership agreement since tax obligations are typically determined by tax laws and not by the partnership agreement itself. The partnership agreement often includes provisions for the division of profits, the mechanism for partners to extract their capital upon withdrawal, and the duties of the members of the firm. These aspects are crucial to managing the partnership efficiently and protecting the interests of all parties involved.

Partnerships are valued for their ease of management and the ability to attract investors. Yet, they come with disadvantages such as shared liability for debts and potential dissolution upon a partner's departure or death. A limited liability partnership can mitigate these risks by limiting partners' liability to their investment in the company.

User Oleg Tarasov
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