John Albert and Matthew Baker have been friends for many years

John Albert and Matthew Baker have been friends for many years

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John Albert and Matthew Baker have been friends for many years. They have decided to go into business together in Phoenix, Arizona. Each of them has worked as a loan officer for a mortgage lending bank in the past. They believe a new lending company would be prosperous. They decide to open a company and call it the “Lending Store”. They have never owned a business before so need some help getting their business venture started. They know you have recently taken a course about business law and come to you for some business advice. 1. Albert and Baker are considering the merits of forming the company as a general partnership. Explain what their respective rights would be as to (a) any profits of the company and (b) participating in the management decisions of the company. a. They should create written partnership agreement. They can use this to clarify responsibilities, profit sharing and voting. If they do not form one of these agreements then the Uniform Partnership Act (UPA) will act in its place. This act presumes that all partners have an equal right to participate in management and an equal share of the profits and losses. 2. If Albert and Baker actually formed a general partnership, explain how this type of
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  • Fall '10
  • williams
  • Business, Corporation, Types of business entity, partner, John Albert, Matthew Baker

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