Your initial response should be a minimum of 250 words and be supported by at least one reference from the readings or outside source. All posts must be in your own words! Direct quotes should be brief and in support of your answer, not the answer itself. All quoted material must be in quotation marks and an in-test citation is always required.

DQ 1: Partnership Formation-250 WORDS Mary Smith owns and manages a sole proprietorship business making candles that she sells at craft fairs and local gift shops. She has a friend, Jane Doe, who also has a sole proprietorship business making and selling scented soaps. The friends decide that they could expand their businesses by forming a partnership and working together. Up to this point each has been working out of her own home, but they now want to expand into a combined production and office facility. A mutual friend, Suzie Rich, believes that the expanded business would be successful selling online and in high end department stores. She wants to invest cash in the business but does not have the time or experience to help manage the business.   1. What are the advantages and disadvantages to each of these parties of forming a partnership?  2. What type of partnership do you think they should create? Why?  3. What issues should they consider when writing a partnership agreement?    DQ2 : Partnership Ethics-250 WORDS 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 names. Kathy signed her name and gave the voucher to the accounts payable clerk who wrote the check for $6,800.   1. Why would a partnership agreement specify that all purchases over a certain amount be approved by all partners? Are there any circumstances that would warrant a deviation from this policy?  2. What are some of the possible outcomes of this situation?  3. What is the accounts payable clerk’s responsibility in this situation?  Reference: Heintz, J. & Parry, R. (2014). College Accounting (21st ed.). Mason: Thompson/South-Western.

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