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A & B approach C about forming a general partnership. A & B will each contribute $10,000 cash as start-up funds. C is to contribute

A & B approach C about forming a general partnership. A & B will each contribute $10,000 cash as start-up funds. C is to contribute no cash but instead work full-time in the business. A, B, & C will share profits equally. A & B will work only part-time in the business. C believes this is a great opportunity for him as he has no investment to risk by going into business with A & C. Is he correct? Discuss

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