Question

Which of the following should be put in place by two business partners who want to be assured that the business will not be lost should either one of them become disabled

Answer 1

Step-by-step explanation:

The answer is a Buy - Sell agreement. It is a contract between business partners and it is legally binding to help make a fair decision when one of the them dies , retires, is disabled or exits the business. It includes a detailed information on what the partnership business is worth, what events qualify for the execution of the agreement, who the buyer would be and the expected tax liability on proceeds from the sale of the business.