Question
Tom is currently in partnership with Eve, operating a hair salon that services clients of all ages and genders. Due to personal reasons, Eve intends
Tom is currently in partnership with Eve, operating a hair salon that services clients of all ages and genders. Due to personal reasons, Eve intends to move interstate and wishes to leave the partnership. Choose all of the statements that are true:
If Tom can find a partner to replace Eve, the new partner could contribute capital allowing the business to continue to operate without interruption.
Eve could remain in the business as a silent partner, only receiving her share of profits but no longer taking part in the day-to-day business operations.
If Tom is unable to find a new business partner, he may have to find the cash himself to pay Eve for her share of the business when she leaves.
If Eve worked in the salon full time as a stylist, Tom may expect a drop in income when she leaves as her clients may choose to go elsewhere.
If Eve leaves the partnership she will still be entitled to a share of profits earned after her departure.
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