Question

When going into a partnership, you should always:_________.

a. put all terms of the partnership into writing in a partnership agreement.
b. make sure that you have limited liability while you are in charge.
c. make sure all the profits are reinvested into the company.

Answer 1

Answer: A. put all terms of the partnership into writing in a partnership agreement.

Step-by-step explanation:

The most important terms in a partnership agreement is ensuring that all terms are noted down and binded legally, this is to help partners know when need to do something and don't feel cheated or be cheated by someone or something. Avoidance of reaching out to terms noted down will further make things complex either when the business is growing or when there is need to shutdown or during operations.