Explain how these changes will address the differences

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Reference no: EM133864368

Problem

Using the following scenario.

Debra and Lori operate a nail salon business as partners who share profits and losses equally. The success of their business has exceeded their expectations, and the nail salon is operating at a profitable level. Get the instant assignment help.

The partners have quite different approaches to operating the business, however. Lori is anxious to maximize profits, so she schedules appointments from 8:00 AM to 6:00 PM daily. She even sacrifices some lunch hours to accommodate regular customers. Debra, by contrast, schedules her appointments from 9:00 AM to 5:00 PM and takes long lunch hours. Debra regularly makes significantly larger withdrawals of cash than Lori does. She tells Lori not to worry, however: "I never make a withdrawal without letting you know, so it is properly recorded in my drawing account and charged against my capital at the end of the year." To date, Debra's withdrawals are twice as much as Lori's withdrawals.

Propose changes to the partnership agreement that address the differences in Debra's and Lori's work and withdrawal habits. Be sure to explain how these changes will address the differences.

Reference no: EM133864368

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