Question

If the partnership agreement is in __________ it is known as a "Partnership Deed".

• A. Verbal
• B. Written
• C. Implied
• D. Verbal, written or implied

Answer 1

Answer: (B)

Written

If the partnership agreement is in written it is known as a "Partnership Deed" because the relationship of partnership arises out of an agreement, aPartnership Agreement is a contract between two or more individuals who decide to manage and operate a business together for profit-making. The Agreement defines the management roles and once the Partnership Agreement is completed, all of the Partners will sign and date the Agreement and keep copies of the Agreement for their records.

Thus the correct answer is B.