COURSE

BUS 1102 – Basic Accounting

This week’s discussion is based on the following scenario. Read the scenario and answer both questions in the Discussion Assignment forum.

Scenario: Sports Memorabilia Store

Farah and David decide to form a sports memorabilia retail partnership. They have known each other since business graduate school and have always worked well together on various projects. The business is doing well but cash flow is very tight. Farah takes several calls from vendors asking for payment. He believed David had been paying the bills. When he asks about this, David admits to embezzling from the partnership.

• What liability does Farah face as a result of the theft?
• Are you for or against a partnership? Please explain.

SOLUTION  

Hello, Class 

What liability does Farah face as a result of the theft? 

When two or more individuals agree to work together as company owners, each contributing money, property, or services, they form a partnership. You may form a partnership in one of three ways: as a limited partnership (LP), a general partnership (GP), or a limited liability partnership (LLP) (Franklin et al., 2020). In this case, the business structure is a general partnership in which the members’ assets would be used to satisfy the partnership’s debts in the event of insolvency.…..please click the icon below to purchase the solution at $5