Policies regarding all of the following points should be included in a partnership agreement EXCEPT ________
A) division of stock
B) capital contribution
C) shares of profits or losses
D) decision-making process
E) departure of partners
A
Explanation: A) By including details about capital contributions, division of profits or losses, the decision-making processes, and departure of partners, partners can avoid misunderstandings from erupting into larger disagreements. There is no stock involved in a partnership so stock need not be included in the agreement; however, division of capital contributions should be clearly defined.
You might also like to view...
An auditor noticed that company B had an exorbitant increase in sales and drastic decreases in its inventory and accounts receivables. The above statement symbolizes which fraud symptom?
a. Accounting anomaly b. Internal control weakness c. Analytical anomaly d. Unusual behavior
What are the four phases of negotiation?
A. Attention, interest, desire, and action B. Planning, studying, sampling, and closing C. Planning, proposing, reciprocating, and closing D. Interest, desire, conviction, and buying E. Planning, meeting, studying, and proposing
When is a franchisor allowed to terminate a franchise? Why are termination-at-will clauses generally held to be void?
What will be an ideal response?
Which of these factors are highly similar from an intensity perspective across the project life cycle?
A) Client Interest and Creativity B) Creativity and Resources C) Resources and Project Stake D) Project Stake and Uncertainty