Please answer the following essay question. Your answer must contain at lease four paragraphs (400 words or more), must be in accordance with the APA format and include at least one reference.

Barnes and Noble, both lawyers, have decided to form a partnership. They have asked your advice on how the profits and losses should be divided and have provided you with the following information:

 

Initial Capital Contribution:
Barnes	$20,000
Noble	$80,000
Time Devoted to Business Operations:
Barnes	75%
Noble	100%

 

Personal facts:

Barnes has an excellent reputation in the community and is very well known. Substantially all new clients will come from her efforts.

Noble has a very strong technical and operational background and is an excellent supervisor of staff lawyers who are expected to do more of the legal research and initial preparation of legal documentation.

Required:

How would you advise the partners to share in profits and losses?