Suppose that you have decided to quit your job as an insurance adjuster and open a bakery. Your business is now growing, and you have decided to add a full line of catering services.

This means more work and responsibility. You will need someone to help you, but you are undecided about what to do.

Should you hire an employee or find a partner? If you add a partner, what type of decisions should be made to create a partnership agreement?

Assignment

1. In a group, discuss the following questions:

a. What are the advantages and disadvantages of adding a partner versus hiring an employee?

b. Assume that you have decided to form a partnership. What information and articles should be included in a partnership agreement?

c. How would you go about finding a partner?

2. As a group, prepare an articles-of-partnership agreement. Be prepared to discuss the pros and cons of your group’s partnership agreement with other groups from your class, as well as to examine their agreements.

3. Summarize your group’s answers to these questions, and present them to your class.