Biology Forums - Study Force

Jaden and Noel are starting a computer repair business together. Jaden insists on outlining rules for the departure of partners in the partnership agreement, although Noel does not think it is necessary. Which of the following statements might Jaden use to explain his insistence to Noel?
A) Provisions to remove a partner's ownership interest are necessary so the business would not have to end.
B) Determining the allocation of profits to new, junior partners is important to eliminate future potential conflicts.
C) Responsibilities must be clearly delineated to avoid the possibility of one partner overstepping his or her bounds.
D) As the partnership matures and ages, defining how profits and losses will be distributed must be made.
E) In a partnership of two, where the possibility of a deadlock is likely, we should provide for a trusted associate to act as an acting third "partner" whose sole responsibility is to be the tiebreaker.

A) The departure of partners is one of several points that should be covered in a partnership agreement. It is likely that over time, the composition of partners will change; stipulations should be made in advance that clearly outline how this event will be handled.

Content hidden