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Smith & Jones is a partnership engaged in the trucking business. Mr. Smith and Mr. Jones are general partners and are equally invested in the
Smith & Jones is a partnership engaged in the trucking business. Mr. Smith and Mr. Jones are general partners and are equally invested in the business. A friend, Mr. Green, has advanced a good deal of money to Smith & Jones for the operation of the trucking business because "[he] always loved trucks." Jones realizes that he is liable personally not only to Green for the money but for anything else for which the partnership is liable. He meets with Smith about changing the partnership to some other form of business. Discuss what other business structures would meet their needs. How would they go about changing the form of the entity and to what extent can they accommodate the interest of Green, who wants his investment returned ?
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Smith Jones as a partnership operates under unlimited personal liability for both Mr Smith and Mr Jones This means they are personally liable for all the debts and obligations of the partnership inclu...Get Instant Access to Expert-Tailored Solutions
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