1. A written partnership agreement should be drawn up between the partners.

One

benefit of an agreement is that it provides a mechanism for resolving disputes

between the partners. List five areas of dispute that might be resolved by a partnership

agreement.

Partnership agreements are critical to the success of a business and business

relationships because they provide the partners with a clear way forward for dealing

with business change, development, and conflicts. Partnership agreements can help

prevent partnership issues from occurring in the first place as well as help to address

them if they do. When starting a business and collaborating with people to manage it,

one of the most crucial documents to draft is a partnership agreement. Partnership

agreements can be very helpful in a variety of significant ways to stop disagreements

between business partners. These agreements can help prevent disagreement by doing

the following:

 Making the obligations of each party transparent. The contract should allocate

accountability for various operational components and decisions that will be

made throughout the business.

 Clearly stating each partner's rights. Each partner's rights to compensation,

profit sharing, and other perks ought to be very clear. Many disputes start as

disagreements over money or relationship equality.

 Creating an organizational structure for decision-making. A partnership

agreement needs to specify who makes decisions and under what

circumstances. In a perfect world, the authority should be shared so that

someone is constantly in charge of a particular business matter.

  Establishing a procedure for settling disputes: Even with the strictest

partnership agreements, disputes can still happen. The agreement should

specify a procedure for respectfully and quickly resolving any disputes.

 The partner can refer to the partnership agreements, employment agreements,

and other legal documents that have been produced whenever a partnership

issue develops. These agreements should make it clear what each party's

responsibilities are, who makes decisions, and how disagreements are settled.

 If the partners are having difficulties reading the applicable terms of a

partnership agreement or have doubts about how the agreement should settle a

specific conflict, an experienced partnership disputes lawyer can guide them

throughout the dispute resolution process.

 If the partners are unable to resolve the conflict amicably or through direct

negotiation with the other partner, it might be necessary to attend mediation

with a third-party negotiator or use the dispute resolution methods stated in the

partnership agreement.

Returning to the original partnership agreement and evaluating their expectations,

commitments, and agreements can help to settle many disagreements. Additionally,

standards and procedures for resolving conflicts should be outlined in the partnership

agreement. If it doesn't, see a lawyer and make the necessary changes to the

partnership agreement so that a dispute resolution clause is included.

The partnership agreement can also help in the following ways:

 Allocating profit and loss will no longer be a problem if there is a partnership

agreement. The partnership will merely receive its predetermined share of

profits and losses.

  The issues with welcoming new partners into the partnership will be solved by

having a partnership agreement.

 The withdrawal issue will be resolved if there is a partnership agreement.

 The issues with liquidation will be solved by having a partnership agreement.

 The issues with asset distribution will be solved by having a partnership

agreement.

2. The statement has been made that “if you must take on a partner, make sure the

partner is richer than you are.” Is this statement valid or not?

The statement can be justified by claiming that having a wealthier partner will first

help the business to have stronger financials, which will allow the partnership to have

more capital. This enables the business to increase its investment. If the partnership

had more money, it could hire more talented people, which would lighten its

workload. More crucially, with more money, the business is more likely to attract

investors. The primary goal of creating a partnership business is to run a successful

business and share the earnings among the partners in order to increase their wealth,

thus this statement is true in that regard. Therefore, if a partnership firm makes money

and expands its operation, the ultimate beneficiaries will be the partners, who will

also see an increase in wealth.