It's Important for Partners to Spell Out the Details of Their

Multiple Choice

It's important for partners to spell out the details of their partnership arrangements in writing 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
E) the law requires these arrangements to be filed with state and federal authorities