Reference no: EM132459452

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.

Problem 1: Explain why a partnership agreement would specify that all purchases over a certain amount must be approved by all partners? All I have is this.-A partnership is an arrangement by two or more parties to manage and operate a business and share its profits. furthermore, all partners must share liabilities and profits equally, while in others, partners they have limited liability. COULD YOU HELP ME ANSWER THIS CORRECTLY PLEASE.