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Case facts:
Anderson, Rivera, and Turner are attempting to form a partnership to operate a public relations agency. They have agreed to share profits in a ratio of 4:3:3 but cannot settle on the terms of the partnership agreement relating to possible liquidation. Anderson believes that it is best not to get into any arguments about potential liquidation now because the partnership will be a success and it is not necessary to think negatively now. Rivera believes that in the event of liquidation, any losses should be shared equally because each partner would have worked equally for the partnership's success, or lack thereof. Turner believes that any losses during liquidation should be distributed in the ratio of capital balances at the beginning of any liquidation because then the losses will be distributed based on a capital ability to bear the losses.
Requirements:
In the form of an interoffice memorandum to the three individuals, you have been asked to help resolve the differences and address the following items.
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