Question: Gus and Rita have decided it would be a good idea to build and operate a truck stop along a rural interstate highway. They have

Gus and Rita have decided it would be a good idea
Gus and Rita have decided it would be a good idea to build and operate a truck stop along a rural interstate highway. They have together (50/50) purchased the necessary land. Gus will build, own, and manage a service station. Rita will build, own, and manage a restaurant. Also, together they will share the cost of building and will jointly own a "7- Eleven" convenience store. They will hire Sarah to manage the store. Gus and Rita agree as follows: (1) Rita will be entitled to 20% of any profits from the service station; (2) Gus will be entitled to 80% of the profit from the service station, and he will bear any and all losses from that business: (3) Gus will be entitled to 20% of any profits from the staurant: (4) Rita will be entitled to 80% of the profits from the estaurant, and she will bear any and all losses from the restaurant. Gus and Rita agree that they will share equally in all profits and losses of the convenience store after paying a salary and 10% of any profit to Sarah. All of this takes place in a state that has adopted the Uniform Partnership Act (1997). True or False: Gus and Rita are partners in the restaurant and service station businesses

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!