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Is Kenya's statement that a written agreement is not necessary to set up a partnership correct?
A) Yes, she is correct.
B) Yes, she is correct, but only because three or fewer members are involved.
C) No, she is incorrect, but only because fewer than five members are involved.
D) Yes, she is correct only if all partners are considered sophisticated investors.
E) No, she is incorrect only if none of the partners have experience with the partnership form of business.
Written Agreement
A contract or agreement that is recorded in writing and signed by the parties involved.
Partnership Form
A type of business structure where two or more individuals share ownership, profits, losses, and responsibilities for managing the business.
Oral Agreement
A contract that has been agreed upon by verbal communication between parties, rather than in writing, though its legal enforceability can vary by jurisdiction and the nature of the agreement.
- Gain an understanding of the core principles related to forming partnerships, with a focus on the criticality and value of having a formal contract among partners.
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Learning Objectives
- Gain an understanding of the core principles related to forming partnerships, with a focus on the criticality and value of having a formal contract among partners.
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