Asked by Natalia Hernandez on Jun 01, 2024
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Mr.Smith and Mr.Blue enter into a partnership at will in which each owns half of the business.Mr.Blue decides to leave the partnership.What should Mr.Blue be paid for leaving the business?
A) Mr.Blue should be paid half of the value of the business.
B) Mr.Blue should receive 15% of the value of the business for leaving.
C) Mr.Blue receives 1/3 of the value of the business for leaving.
D) Mr.Blue receives nothing for his dissociation.
Partnership at Will
A partnership with no fixed duration, meaning it can be dissolved at any time by mutual agreement of the partners or the action of a single partner.
Value of the Business
An estimate of the economic worth of a company, determined through various financial evaluations and market assessments.
Leaves
The plural of leaf, but in a different context can refer to periods of absence from work granted to employees.
- Identify the characteristics and implications of partnership at will.
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Learning Objectives
- Identify the characteristics and implications of partnership at will.
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