Discuss the disadvantage= of the partnership form of busines

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Question 1: Kathy Lentz, Rob Snyder, and Tom Rohm were all general partners in a consulting business. Each partner owned one-third of the business. The partnership agreement stated that all three partners must approve vouchers for payments in amounts exceeding $5,000. While Tom was on vacation, Kathy and Rob decided to purchase a new computer system costing $6,800. A voucher was prepared and Rob signed both his and Tom's name. Kathy signed her name and gave the voucher to the accounts payable clerk, who wrote the check for $6,800.Explain why a partnership agreement would specify that all purchases over a certain amount must be approved by all partners.

Question 2: State any circumstances that would warrant deviation from this policy.

Question 3: Discuss the disadvantages of the partnership form of business ownership.

Reference no: EM132459468

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