This case deals with a two persons, Person D and Person S opening up a Company L under partnership . After 7 years later with the help of a written agreement the partnership was dissolved. This news was printed in the local newspaper however no notice was given to companies which earlier credit extended to them in the earlier. On the basis of the agreement of dissolution, one of the partners decided to endure with the problem with the business. The problem here enquires one to determine if the closure of the partnership will release the proprietor of any liabilities left. To discuss: Whether the partnership dissolution relives Person D for personal liability of accounts.

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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 31, Problem 19CP

Summary Introduction

Case summary:

This case deals with a two persons, Person D and Person S opening up a Company L under partnership. After 7 years later with the help of a written agreement the partnership was dissolved. This news was printed in the local newspaper however no notice was given to companies which earlier credit extended to them in the earlier. On the basis of the agreement of dissolution, one of the partners decided to endure with the problem with the business. The problem here enquires one to determine if the closure of the partnership will release the proprietor of any liabilities left.

To discuss: Whether the partnership dissolution relives Person D for personal liability of accounts.

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accreditation. Thato had to work with international bodies, adding complexity and expense to her operations. Despite these challenges, Thato capitalized on the strengths of the entrepreneurial environment. She formed partnerships with local agricultural cooperatives and NGOs, enabling her to access shared resources, knowledge, and training programs. She also collaborated with the government to participate in a public-private initiative promoting sustainable farming, which provided her with a modest grant. Thato leveraged digital platforms to connect directly with customers, eliminating intermediaries and offering competitive pricing. Her ability to innovate and adapt proved critical in sustaining her business, even during economic disruptions caused by the COVID-19 pandemic. By the end of 2023, Savannah Organics had expanded its operations to 15 hectares, supplying produce to supermarkets across the country and partnering with health-focused restaurants. Thato's journey highlights both…

Case Study: Savannah Organics In the fast-developing economy of Botswana, a young entrepreneur, Thato Dlamini, decided to venture into organic agriculture. Inspired by the growing global demand for organic produce, Thato founded Savannah Organics in 2019, aiming to supply pesticide-free fruits and vegetables to urban markets. The company started with a modest 5-hectare plot on the outskirts of Gaborone. Despite its potential, Savannah Organics faced significant challenges linked to the entrepreneurial environment. Access to funding was one of the primary obstacles. Thato struggled to secure a bank loan, as the financial institutions required collateral far beyond her means. Her attempt to raise funds through grants was equally difficult, with bureaucracy and lack of clear guidance delaying her applications. Another challenge was the lack of supportive infrastructure. Irrigation systems and farm equipment were either unavailable locally or prohibitively expensive, forcing Thato to…

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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 31, Problem 19CP

Summary Introduction

Case summary:

This case deals with a two persons, Person D and Person S opening up a Company L under partnership. After 7 years later with the help of a written agreement the partnership was dissolved. This news was printed in the local newspaper however no notice was given to companies which earlier credit extended to them in the earlier. On the basis of the agreement of dissolution, one of the partners decided to endure with the problem with the business. The problem here enquires one to determine if the closure of the partnership will release the proprietor of any liabilities left.

To discuss: Whether the partnership dissolution relives Person D for personal liability of accounts.

Expert Solution & Answer

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Answer 3

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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 31, Problem 19CP

Summary Introduction

Case summary:

This case deals with a two persons, Person D and Person S opening up a Company L under partnership. After 7 years later with the help of a written agreement the partnership was dissolved. This news was printed in the local newspaper however no notice was given to companies which earlier credit extended to them in the earlier. On the basis of the agreement of dissolution, one of the partners decided to endure with the problem with the business. The problem here enquires one to determine if the closure of the partnership will release the proprietor of any liabilities left.

To discuss: Whether the partnership dissolution relives Person D for personal liability of accounts.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

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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 31, Problem 19CP

Summary Introduction