The students in ACCT450 decide to form a partnership in order to start a business that researches mergers and acquisitions and sells their analysis to investors via a monthly report. Further, they decide to split the responsibilities of the partnership into three different areas as follows:

• One third of the students invest the majority of the capital needed to get the business started, but do not want to be involved on the daily operations.
• One third of the students have extensive experience in analyzing mergers and acquisitions and plan to perform the majority of the daily work.
• The remaining third of the students believe they provide the most value to the new partnership by marketing the monthly report to their investment contacts.

Required

Write a memo to the other members of ACCT450 proposing two different ways the partnership can fairly allocate the profits of the partnership among the three different groups of partners identified above. Feel free to be creative, but please make sure your proposals are at least somewhat realistic.