The Partnership Contract
From EjWiki
A great instance of heading with your gut was when 1 of my customers who we will call Julie was preparing on merging businesses with a companion. She experienced currently invested a great deal of time and cash on business agreements, contracts and marketing ideas. Plans to launch the new company and partnership had been obtaining close. Some thing stored nagging at Julie, keeping her up at night with fears. She consulted with her attorney who told her that she was risking time and money if she went alongside with the agreement. That day she produced the decision not to go through with the partnership and pull the plug. Luckily she listened to her intuition. She later on discovered out that the companion had produced several poor business agreements in the previous and most likely would have done wrong by Julie as nicely.
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Some of you studying this may have noticed that in the example above, John didn't make investments a penny. He utilized his time and expertise rather, and made the same $24,571 profit as the rest. You can see that if you consider John's function that this is a way to invest with no money. Of course, as the common companion, if the partnership is sued, he could shed his house and other property, whilst restricted partners could shed only the $10,000 they invested. This is one of the large advantages of a restricted partnership.
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