You are in a group that is considering forming a partnership to purchase a coffee shop located
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Research and provide a written summary for the following:
a. Does every partner in fact have the right to serve as an agent of the partnership and bind the partnership by that individual partner's actions in carrying out the partnership business?
b. If a new partner is admitted after the partnership operates for a time, what is the new partner's liability for partnership obligations arising before his or her admission? What is the new partner's liability for obligations of the partnership incurred after his or her admission?
c. Should all partners be able to examine the accounting records (the partnership's books) at any time?
d. What happens if the term of the partnership is set at one year and the partners decide to continue doing business? Is a new partnership agreement necessary at that time?
e. What happens if an individual partner wishes to leave the partnership? Can that person just announce to the other partners that he or she no longer wishes to be in the partnership and will not be liable for any future partnership obligations? What are the rights of the other partners in this matter?
f. What items do you believe should be in the partnership agreement prepared before actually agreeing to form the partnership?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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