Question

A good partnership agreement may

a. organize the repayment to third parties of partnership debts
b. determine the objectives and responsibilities of the partners
c. set out the priority of claims against the partnership upon dissolution of the partnership
d. limit the liability of any one partner for joint and several liability

Answer 1

A good partnership agreement can provide benefits such as organizing debt repayment, determining partner responsibilities, setting claim priority, and limiting liability.

Step-by-step explanation:

A good partnership agreement can provide several benefits:

1. It can help organize the repayment to third parties of partnership debts, ensuring that all partners contribute their fair share.
2. It can determine the objectives and responsibilities of each partner, clarifying their roles in the partnership.
3. It can set out the priority of claims against the partnership upon dissolution, outlining how the partnership's assets will be distributed.
4. It can also limit the liability of any one partner, protecting them from being personally liable for the partnership's debts beyond their invested amount.

By addressing these aspects in the partnership agreement, partners can establish a clear framework for their business and ensure fairness and protection for all involved.