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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.
Problem 1: What liability does Farah face as a result of the theft?
Problem 2: Are you for or against a partnership? Please explain.
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