When forming a partnership, what document should you draft?

• A. A customer service policy
• B. A product launch plan
• C. A document about how business decisions are made, how disputes are resolved, and how to handle a buyout
• D. Employee handbooks

Answer: (C)

When you form a partnership, you should draft a partnership agreement that details how decisions are made, how disputes are resolved, and how a buyout is handled. This document sets the governance rules, clarifies voting rights and profit sharing, and provides a clear path for resolving disagreements without tearing the partnership apart. It typically includes procedures for deadlock resolution, buy-sell provisions, valuation methods, and triggers for exit or dissolution. Having it in writing protects all partners by setting expectations and offering a roadmap for changes, such as bringing in a new partner or buying out an existing one. Other documents like customer service policies, product launch plans, or employee handbooks cover operations or HR but don’t govern partnership governance or exit mechanics, so they aren’t the primary document for forming a partnership.