Given scenario: Person M and Person C maintained 20 years of friendship and they have a common interest in starting a business. After 2 years, the things began to change. Person C started concentrating on other things and she wanted to work for only 2 days per week. Person C started spending less time in managing the inventory. However, Person C does not want to make any changes to the partnership agreement. To determine: Whether it is fair for Person C to work fewer hours than Person M.

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Answer 1

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 3, Problem 3.21EE

Summary Introduction

Given scenario:

Person M and Person C maintained 20 years of friendship and they have a common interest in starting a business. After 2 years, the things began to change. Person C started concentrating on other things and she wanted to work for only 2 days per week. Person C started spending less time in managing the inventory. However, Person C does not want to make any changes to the partnership agreement.

To determine: Whether it is fair for Person C to work fewer hours than Person M.

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Suppose you have to start business dealings with a company named “XYZ” how will you document the conditions both parties agreed or disagreed on and what are the considerations for such agreement?

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What is a partnership? Outline the legal issues involved in the formation of a partnership. In your answer, discuss the issues that partners should consider in drafting the partnership agreement.

Answer 2

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 3, Problem 3.21EE

Summary Introduction

Given scenario:

Person M and Person C maintained 20 years of friendship and they have a common interest in starting a business. After 2 years, the things began to change. Person C started concentrating on other things and she wanted to work for only 2 days per week. Person C started spending less time in managing the inventory. However, Person C does not want to make any changes to the partnership agreement.

To determine: Whether it is fair for Person C to work fewer hours than Person M.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 3, Problem 3.21EE

Summary Introduction

Given scenario:

Person M and Person C maintained 20 years of friendship and they have a common interest in starting a business. After 2 years, the things began to change. Person C started concentrating on other things and she wanted to work for only 2 days per week. Person C started spending less time in managing the inventory. However, Person C does not want to make any changes to the partnership agreement.

To determine: Whether it is fair for Person C to work fewer hours than Person M.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 3, Problem 3.21EE

Summary Introduction