Question

Linda and Chet decide to start their own landscaping business. Their state requires them to draw up an agreement listing how much money they contributed, their management roles or duties, how their profits and losses will be divided, how they may leave the partnership, and any other restrictions that might apply to their agreement. What type of agreement is this?

(A) Articles of partnership
(B) a corporate charter
(C) articles of incorporation
(D) codes of conduct
(E) a partnership capital statement

Answer 1

Answer:

The correct answer is letter "A": Articles of partnership.

Explanation:

The Articles of partnership is a legal document requested when forming a Limited Liability Partnership (LLP) where the partners' contribution, functions, percentage of ownership of the partnership, liabilities, distribution of profits and losses, and means of dissolution are specified.