A partnership and a corporation are similar insofar as they are both created by mere agreement of the parties involved.Group of answer choicesTrueFalse

The statement that a partnership and a corporation are similar in that they are both created by mere agreement of the parties involved is False.

Explanation:

1. A partnership is typically formed through an agreement between individuals who wish to conduct business together. This can be an informal oral agreement, but it is generally more formalized through a partnership agreement.

2. A corporation, on the other hand, is a legal entity that is created by filing articles of incorporation with the state. This process involves compliance with state laws and regulations, distinguishing it from a partnership.

Conclusion:

While both entities involve agreements among parties, the creation process of a corporation is formal and regulated by law, which is not the case for a partnership. Thus, the statement is false.