BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the business continues even if one partner dies
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partners must pay specific business taxes on stock they issue
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partners usually draw up legal papers called articles of partnership.
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partners are only liable for the business’ debt up to the amount of their investment
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Detailed explanation-1: -Articles of partnership is a contract that forms an agreement among business partners to pool labor and capital and share in profit, loss, and liability. Such a document acts as a rule book for limited partnerships by outlining all the conditions under which parties enter into a partnership.
Detailed explanation-2: -Partnership deed is a written legal document that contains an agreement made between two individuals who have the intention of doing business with each other and share profits and losses. It is also called a partnership agreement.
Detailed explanation-3: -A general partnership is a business arrangement by which two or more individuals agree to share responsibilities, assets, profits, and financial and legal liabilities of a jointly-owned business. In a general partnership, partners agree to be personally responsible for potentially unlimited liability.