John, George and Jenice are old school friends. They have been thinking about the possibility of opening their own caf in a busy city location.They explain to you that they would like to set up a partnership and outline their responsibilities. As an experienced chef, John would be working full-time in the kitchen and managing the caf's day-to-day operations. George would be the business consultant and would provide financial and management advice as required. This would be around 4 times a year. Jenice has agreed to provide the capital for starting up the caf but she does not want any further responsibility.

Required

1. Explain to John, George and Jenice the importance of a Partnership Agreement.
2. Identify and explain any entitlements that John, George and Jenice should consider in their Partnership agreement.
3. Identify and explain one advantage and one disadvantage associated with a partnership.