Partnership (Essay Sample)

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A partnership allow persons to conduct business commonly and they share the profits or losses so is the liabilities and obligations of the partnership. In the example given of the marketing consulting partnership, the partners had accepted to add a new partner from time to time. Whether the new partners are subject to the prior partnership liabilities and obligations or their retiring partner obligation upon leaving the partnership is dependent on the existing partner’s decision.
In most states, there are corporations’ laws the exempt new partners to an existing partnership from obligations that were incurred before his/her admission into the partnership. In the absence of such a law, the partnership need to have a written agreement on procedure and standards which a new member has to meet in order to be accepted. In this agreement they can clarify that the new member won’t be liable to prior obligations of the business.
Dissolution of a partnership will occur if a partner dies or leaves. But in Herbert and others marketing consulting partnership they can have a buyout agreement which is within the jurisdictions of the law. A buyout agreement will give them an option of what to do when one of their member retires which include selling his share at the agreed price. They will clarify if retiring partner...