In-Class Assignment - Create a Partnership Agreement

In-Class Assignment - Create a Partnership Agreement

Brain Food, Anyone?

You and your classmates are about to go into the food business. Having spent many hours in the library without food or drink, you have received permission to operate a food cart in the lobby outside the library as long as you take responsibility for keeping the area clean. You plan to provide bottled water, juices, and milk, as well as fruit, muffins, and trail mix. You will also offer granola that can be purchased with milk, as well as hard-boiled eggs and yogurt. Your business will be called “Brain Food,” and everything you offer will be healthy. The cart will have a cooler for the perishable items, but no stove. No electricity will be needed. Your plan is to operate the cart all hours that the library is open.

You and your partners will form a general partnership. In the next 30 minutes, in your groups, please draft a basic partnership agreement, which will include the following:

1. Business vision
2. How initial equity investment will be divided and ownership
3. How profit and loss will be shared
4. Definition of business roles—How can you capitalize on each other’s strengths?
5. Pay and compensation
6. Provisions for dissolution of partnership
7. Distribution of assets upon dissolution
8. Length of partnership
9. How disputes will be handled
10. What is the decision-making process?

Reference Fig. 4.3 Page 107 as a guide.  However, I encourage you to use your own ideas in the group discussion.