Question

Probably the most important reason to have a partnership agreement is that ________. Group of answer choices it resolves potential sources of conflict that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business it determines how the partnership and the partners will pay taxes it states the location and the purpose of the business

Answer 1

Answer:

It resolves potential sources of conflicts that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business

Explanation:

A partnership agreement is a formal document or a contract endorsed by all the parties to the partnership business, which contains right, responsibilities and obligations of each partners.

It is important for partners to have an agreement, because it is legal, hence each partner must act according to the terms contained in the agreement. The basic reason or one of the most important reason to have this partnership agreement is to avoid legal tussles in the future, which could lead to the dissolution of the partnership business.