question archive Chuck, Howard, and Ben decide to go into a business venture, developing and distributing educational software
Chuck, Howard, and Ben decide to go into a business venture, developing and distributing educational software
Subject:ManagementPrice:3.87 Bought7
Chuck, Howard, and Ben decide to go into a business venture, developing and distributing educational software. For tax reasons, they do not incorporate. Each contributes $10,000, and Howard also contributes a truck and his programming expertise. They agree that all three will be actively involved in the day-to-day management of the business. To determine their rights and obligations, they enter into a one-page agreement that provides only that each of Chuck, Howard, and Ben is to get 33-1/3% of the profits and also specifically states that they are not to be viewed as partners. Based on these facts, explain their partnership type, situation and liabilities
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
Based on these facts, explain their partnership type, situation, and liabilities.
?Chuck, Howard, and Ben will be considered as partners in the eyes of law.
This is considered a partnership firm.
?They share profits and are involved in the management of the business
?They will share profits and losses in their agreed ratio of 1/3 each.
