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Question: After many years of working in a large accounting partnership, Grace Campbell and 19 of her colle...

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After many years of working in a large accounting partnership, Grace Campbell and 19 of her colleagues decide to form their own accounting firm as a limited liability partnership. They will call the firm Campbell & Associates LLP. Grace and 4 of her colleagues, which they refer to as the A Group, have 10 or more years of experience in the accounting field. Each of them plans to contribute $200,000 in capital to the partnership. Each member of the A group has a strong reputation in the New York, New Jersey and Connecticut area, and expects to attract many of the new firms clients to the firm, at least in the first few years. The A group expects that the majority of its time in the first three years will be spent attracting new clients, and managing the operations of the firm. Each of them has experience in managing the operations of an accounting firm, including personnel, financial and marketing matters.

The remaining 15 colleagues, called the B Group, are expected to attract fewer clients. However, they will be expected to take charge of the service to be provided to the firms clients. The B Group members will each contribute $50,000 in capital to the partnership. They each have between 5 and 10 years of experience in the accounting field. Group A partners will oversee the work of the Group B partners.

As the business becomes profitable, Campbell & Associates LLP plans to hire 10 accountants as employees and 20 support staff employees (such as administrative assistants, a receptionist, and information technology employees). The work of these employees will be managed on a daily basis by B Group partners.

Some of the 10 accountants who are hired as employees may be elected into the partnership within 4 to 8 years. Campbell & Associates LLP expects to generate annual revenue of $2 million in Year 1, $3 million in Year 2, and $5 million in Year 3.

Name "Write name on each page) As the business becomes profitable, Campbell & Associates LLP plans to hire 10 accountants as employees and 20 support staff employees (such as administrative assistants, a receptionist, and information technology employees). The work of these employees will be managed on a daily basis by B Group partners. Some of the 10 accountants who are hired as employees may be elected into the partnership within 4 to 8 years Campbell & Associates LLP expects to generate annual revenue of $2 million in Year 1, $3 million in Year 2, and $5 million in Year 3 Part A: What are the default rules under the applicable model statute that will govern Campbell & Associates LLP on the issues of management, including power to manage, liabilities, compensation of the partners, and sharing of profits and losses? (5 points) Part B: How should the partnership agreement change the default rules to reasonably reflect the intentions of the partners in Campbell& Associates LLP on the issues of management, compensation, sharing of profits and losses, dissociation of partners, and termination of the partnership? Proper use of terminology is important, but you do not have to draft a full agreement. (S points)