Question

Kristen and her brothers and sisters decided to form a partnership that specializes in home design of all types. One of their goals is to maintain the loving relationship they currently enjoy, so they are following the Model Business Corporation Act recommendations as they write the partnership agreement. Which of the following is an accurate recommendation of the Act?A. The business should be actively operating for an extended period before the partners decide who is responsible for what business functions.B. Family businesses never take on outside partners, so no discussion of this need should take place.C. There should be discussion and well understood ways that the partners will handle disagreements and have a written exit strategy.

Answer 1

Answer:

The correct answer is letter "C": There should be discussion and well understood ways that the partners will handle disagreements and have a written exit strategy.

Explanation:

The Model Business Corporation Act (MBCA) is a set of laws meant to regulate business practices. The Act or at least part of it is accepted by every state of the U.S. The MBCA goes over different topics related to the establishment of a corporation such as the steps related to creating the firm, the liability and its effects, corporate management structure and good practices to avoid internal misunderstandings.