Your friend, Oliver Lung, recently completed his second year in his own business. Oliver's business is growing rapidly and he needs an infusion of funds to help finance the expansion. Oliver tells you about his friend Mary who has access to funds and is a creative individual with whom Oliver gets along very well. Oliver is considering offering Mary a piece of the business and forming a business partnership. Oliver says, "Mary and I go way back and are close friends so I don't think we need any formal written partnership agreement."

Required:

What memo should you done to your friend Oliver to explain the purpose of a partnership. Comment on why a written agreement is essential and what matters should be included in the agreement.