Rhonda Puente, a friend from college, approaches you about forming a partnership to export software. Since graduating, Puente has worked for the Export-Import Bank, developing important contacts among government officials and business leaders in Eastern Europe. Puente believes she is in a unique position to capitalize on the growing market in Eastern Europe for American computers. With expertise in finance, you would have responsibility for accounting and finance in the partnership.

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Discuss the advantages and disadvantages of organizing the export business as a partnership rather than a proprietorship. Comment on how partnership income is taxed.