S$121$ For both of the independent situations below, indicate if you would recommend the partnership form of business organization. State the reasons for your recommendation.

$1.$ Philip Harcourt just joined the law practice of Osler and Hoskins. He thinks he will be making a huge salary and is worried about the tax effects of this income. He thinks the partners should incorporate the partnership and avoid the tax bill.

$2.$ Fred Klaus and Felix Cadeau would like to form a construction company. Fred has the contacts, cash, and estimating skills, while Felix has equipment and field experience. There will be minimal profits until the business has a few projects.