Q11.Nick and Michael agree to put on a Golf Tournament. They call their business 'The Mick N Nick Golf Event'. Nick is in charge of the administration and catering arrangements while Michael undertakes duties relating to the golf. Profit/losses are to be shared according to each separate activity. Each puts up their own capital to complete each of their tasks. The event is a success with the catering making $4,000 profit and the golf earns S3,000.

Answer the following questions.

(a)Is this a partnership or joint venture?

(b)How will the profits be shared?

(c)Would the profits be shared differently if the catering made a loss?

(eThe food suppliers have not been paid and are suing for S5,000. Who should they sue?

(e)Michael's equipment worth $2,000 is stolen and he asks Nick to contribute half of the loss. Would he succeed?