A Good Reason Why Partners Should Spell Out the Details

Multiple Choice

A good reason why partners should spell out the details of their partnership arrangements in writing is because ________.

A) the partnership is not a legally recognized business until the arrangement is in writing
B) a written agreement will help reduce misunderstandings and disagreements among the partners
C) putting the agreement in writing will limit the liability of each partner to a specified level
D) doing so will make it easier to convert the business to a corporation at a later date