Explain why a partnership agreement specify all purchases

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Question 1: Kathy Lentz, Rob Snyder, and Tom Rohm were all general partners in a consulting business. Each partner owned one-third of the business. The partnership agreement stated that all three partners must approve vouchers for payments in amounts exceeding $5,000. While Tom was on vacation, Kathy and Rob decided to purchase a new computer system costing $6,800. A voucher was prepared and Rob signed both his and Tom's name. Kathy signed her name and gave the voucher to the accounts payable clerk, who wrote the check for $6,800.

Problem 1: Explain why a partnership agreement would specify that all purchases over a certain amount must be approved by all partners? All I have is this.-A partnership is an arrangement by two or more parties to manage and operate a business and share its profits. furthermore, all partners must share liabilities and profits equally, while in others, partners they have limited liability. COULD YOU HELP ME ANSWER THIS CORRECTLY PLEASE.

Reference no: EM132459452

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