5. For years, Andrew worked for a national airline as a pilot. When the stress got to him, he decided to simplify his life. He packed his bags and moved to Key West. Andrew decided to start his own transportation and touring service for travelers. To accomplish his goal, he needed to purchase a small commuter plane. He only had one problem—money. Andrew telephoned his very wealthy uncle in Seattle to see if he would like a piece of the action. Andrew proposed that he would run the day-to-day activities of the company, while his uncle would just provide a percentage of the capital. His uncle agreed, and Andrew contacted an attorney to develop a written agreement.
Answers
Answer :
Andrew, a former pilot, decided to start his own transportation and touring service in Key West, but needed financial support to purchase a small commuter plane. He reached out to his wealthy uncle in Seattle who agreed to provide a percentage of the capital needed in exchange for a share in the company. Andrew then contacted an attorney to draft a written agreement.
Explanation :
The written agreement, known as a partnership agreement, outlines the terms and conditions of the partnership, including the responsibilities of each partner, the percentage of ownership for each partner, and how profits and losses will be shared. It also includes details about how the partnership will be dissolved, in case the partners decide to end their business relationship.
In this case, Andrew and his uncle have formed a partnership, with Andrew being responsible for running the day-to-day activities of the company and his uncle providing a percentage of the capital. The partnership agreement will outline the specific details of their arrangement, including the percentage of ownership for each partner and how profits and losses will be shared.
If the partnership is successful, both Andrew and his uncle will benefit financially. However, if the partnership is not successful, both partners will be liable for any debts or losses incurred by the business. It's important for both parties to thoroughly review and understand the partnership agreement before entering into the partnership.
It should be noted that, the partnership agreement is a legal document and should be reviewed by a lawyer, to ensure that all legal aspects are covered and that the agreement is enforceable in court.
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