Mandeep, Beverly, Christopher and Dominic have been selling jewellery (both costume and metal) for the last 12 months, which are designed and made by Christopher (who acquired Art Design degree from Trend College).They agree on all the final outputs, sale prices before they are put into production.There is a joint bank account in which profits are paid into on a weekly basis; they all have access to this.They share profits at the end of each quarter (every 3 months) this is taken in equal shares by all parties, although Mandeep (he inherited $250,000 recently) provided 50% of the capital contribution, Beverly ( a marketing expert) did not provide any of the capital contribution for the start-up of the business, with Christopher and Dominic ( bit of an Accounting wizard) putting in 25% each.They have discussed in the last couple of months bringing in a new partner because business is really booming.Also, all partners have families and wonder whether profit sharing at the end of each quarter is satisfactory, Christopher is also still paying off his student loan.Consider the following

Identify and explain which type of business organization, if any, are they running? 3 marks

Should the parties have a written agreement, if so, why is this necessary under the circumstances?