Question

To avoid misunderstanding between the partners, the partners need _________________.

• A. clear mutual understanding
• B. clear communication between partners
• C. clear agreement of terms and conditions
• D. clear objectives

Answer 1

The correct option is C clear agreement of terms and conditions

To avoid misunderstanding between the partners, the partners need clear agreement of terms and conditions and which is called partnership deed. It is written agreement of partnership, which depicts the contract between two or more individuals who decide to manage and operate a business together for profit-making. The deed defines the management roles and once the Partnership deed is completed, all of the Partners will sign and date the deed and keep copies of the deed for their records.

Thus the correct answer is C.