What must be established to ensure clear roles and responsibilities in a partnership?

Establishing a written agreement is crucial in a partnership to ensure clear roles and responsibilities among partners. A written agreement serves as a formal document that outlines each partner’s duties, obligations, and the specific roles they will perform within the partnership. This clarity helps prevent misunderstandings and disputes that can arise from vague or informal arrangements.

A written agreement also offers legal protection, as it can be referenced in case of any disagreements. It can include details such as profit-sharing ratios, decision-making processes, and the procedures for resolving conflicts, thus providing a structured framework for the partnership. While oral agreements might be legally binding in some cases, they are much harder to enforce and can lead to ambiguity. Other options like a business license or partnership registration do not define the internal dynamics of the partnership in terms of roles and responsibilities; they primarily serve legal compliance purposes.