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(e) How many partners are there in the firm? Decision-Making Across the Organization BYP12-2 Stephen Wadson and Mary Shively, two professionals in the finance area,

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(e) How many partners are there in the firm? Decision-Making Across the Organization BYP12-2 Stephen Wadson and Mary Shively, two professionals in the finance area, have worked for Morrisen Leasing for a number of years. Morrisen Leasing is a company that leases high-tech medical equipment to hospitals. Stephen and Mary have decided that, with their financial expertise, they Broadening Your Perspective 569 might start their own company to perform consulting services for individuals interested in leasing equipment. One form of organization they are considering is a partnership. if they start a partnership, each individual plans to contribute $50,000 in cash. In addition, Stephen has a used IBM computer that originally cost $3,700, which he intends to invest in the part- nership. The computer has a present fair value of $1.500. Although both Stephen and Mary are financial wizards, they do not know a great deal about how partnership operates. As a result, thev have come to you for advice Instructions With the class divided into groups, answer the following 40. What are the major disadvantages of starting a partnership (by Wlat type of document is needed for a partnership, and what should this document contain: @ Both Stephen and Mary plan to work full-time in the new partnership. They believe that net income or het loss should bx shared equally. However, they are wondering tomonide uam- ensation 1 Stephen Wadsen for his investment of the computer. What would you tell them di Stephen is not sure how the computer pent should be reported on his was retung. What would tell i fel. A niested above Stephen Mary have worked together ons rumbo vars Stephen Skills complement Mandalum dis die hele 11, 111 (h h1-11 1811 (1111111111 111 ( - 1, `ts 1 his or her test Whenta

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