When Lisa and Steve decided to start their own house flipping business, their state required 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

Question

Mcgee

Business

12 January, 07:33

When Lisa and Steve decided to start their own house flipping business, their state required 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

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Answers (1)

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Evangeline Burns · Answer 1

The correct answer is letter "C": articles of partnership.

Explanation:

The articles of partnership is a document signed by entrepreneurs who want to share capital and labor to form a business. The agreement is necessary for most state governments at the moment of constituting a business to determine the size of the contribution of each participant, the duties assigned to each partner, the location of the business, name of the entity, how profits and losses should be allocated, and how the organization dissolves.