Assignment+One+2009+-+Student+Version - Case Assignment#1...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Case Assignment #1 MGTC31 – LEC 01 Summer Term 2009 (names removed) Due: June 2nd
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Introduction In section 2.2 of the Partnership Act, the general definition of a Partnership starts off as stating that a “Partnership is the relation that subsists between persons carrying on a business in common with a view to profit”. In our analysis of this case, we present the relevant facts and arguments illustrating that Maggie Johnson is a rightful partner of Wilderness Adventure Tours, and is therefore entitled to the profits generated from the sale of partnership assets. We examine both sides of the argument for each of the relevant points (referencing the Partnerships Act where suitable), and provide our recommendation based on these arguments. Carrying on a Business in Common Being co-owners of the inherited land does not make Maggie and Jane partners as section 3.1 clearly indicates: “Joint tenancy, tenancy in common, joint property, common property, or part ownership does not of itself create a partnership as to anything so held or owned, whether the tenants or owners do or do not share any profits made by the use thereof.” However, by agreeing to “share the land and help one another with their efforts”, they implicitly created an oral agreement to share the expenses of the land and the opportunity costs related to the use of the land. In the process of getting their respective ventures going, both Maggie and Jane helped one another in the construction of the various facilities required for their respective ventures. Maggie also helped out her sister financially for a while before her venture picked up. We can assume that these “loans” were certainly material as the initial investment required in building a boathouse and purchasing equipment could easily register in the tens of thousands of dollars thus starting off slowly would create a significant cash shortfall. Loans of this size between separate businesses would be accounted for formally, likely with a binding contract. In this case here between Maggie and Jane however, we learn that strict accounting was not kept. Now
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 6

Assignment+One+2009+-+Student+Version - Case Assignment#1...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online