A partnership is a for profit business association of two or more persons. Which of the following statements are true about partnership? Each correct answer represents a complete solution.
Choose all that apply.
A.
Each and every partner shares directly in the organization’s profits and shares control of the business operation.
B.
A partnership is an arrangement where parties agree to cooperate to advance their mutual interests.
C.
The consequence of this profit sharing is that employees are jointly and independently liable for the partnership’s debts.
D.
Partnerships present the involved parties with special challenges that must be navigated unto agreement.
Explanation:
A partnership is a for profit business association of two or more persons. Because the business component is defined broadly by state laws and because persons can include individuals, groups of individuals, companies, and corporations, partnerships are highly adaptable in form and vary in complexity.A partnership is an arrangement where parties agree to cooperate to advance their mutual interests. Partnerships present the involved parties with special challenges that must be navigated unto agreement. Each and every partner shares directly in the organization’s profits and shares control of the business operation. The consequence of this profit sharing is that partners are jointly and independently liable for the partnership’s debts.