Answer to Question #225623 in Management for Muhammad Amar

Question

Suppose that shortly after graduating from university you decide to open a restaurant in your city. You 

may find that it is not possible to arrange money required to start and run the business alone. You may 

then talk to your friends and all of you agree to run the restaurant by contributing a certain sum of 

money and other things required. So all of you join hands together to become the owners and share 

profits and losses. Draw up a partnership agreement when entering into partnership.

Answer 1

In this case, the partnership agreement will entail the contract between me and other individuals who would like to manage and operate the restaurant together in order to make a profit. Each Partner shares a portion of the partnership's profits and losses and each Partner is personally liable for the debt and obligations of the Partnership. Thus, the assets, labor, and other contributions towards the restaurant will be shared among us,