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Question: John, George and Jenice are old school friends. They have been thinking about the possibility of opening their own café in a busy city location. They explain to you that they would like to set up a partnership and outline their responsibilities. As an experienced chef, John would be working full-time in the kitchen and managing the café's day-to-day operations. George would be the business consultant and would provide financial and management advice as required. This would be around 4 times a year. Jenice has agreed to provide the capital for starting up the café but she does not want any further responsibility.
Required: - Explain to John, George and Jenice the importance of a Partnership Agreement.
- Identify and explain any entitlements that John, George and Jenice should consider in their Partnership agreement.
- Identify and explain one advantage and one disadvantage associated with a partnership.
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