When entering into a partnership, it is a good idea to get a lawyer to

QUESTION

When entering into a partnership, it is a good idea to get a lawyer to draw up a document called articles of partnership. Why?

What will be an ideal response?

ANSWER

Answer: Articles of partnership refers to a legal document that defines the role of each partner in the business, states how much money each partner is to invest, and specifies what will happen to the business if one or both partners die or one partner wants to leave the partnership. Establishing these things early on sets the boundaries in the relationship and lets everyone know the terms and where they stand.
Explanation: Articles of partnership (a) define the role of each partner in the business, (b) specify how much money each is to invest, and (c) specify the buy/sell arrangements if one or both partners die or if one wants to get out of the arrangement.