Relpy to discussion board 3 | BUSI 301 – Business Law | Liberty University
Hello, I need to response to why I agree with the discussion board listed below 100 words with 1 scholarly reference)
The first thing that stands out in the potential of Peter and Andrew forming of a business partnership is the fact that Paul is a friend. “At the heart of a partnership is the extent to which parties know each other well, both personally and professionally. A clear understanding of what each brings to the table is critical. Skills, resources, leadership styles as well as personal values, ideals and goals are paramount to interrogate. These need to be revisited and examined as the business evolves and changes” (du Plessis, 2017). Not only is there value in their friendship despite any differences, obviously Paul has great value that he brings to the table for the management in hospitality and is the one chosen for consideration of the role. Just because Paul is not comfortable with most churches and their positions, it does not disqualify him to learn and grow in understanding through his service of people of different types. Perhaps something or someone has contributed to any brokenness and disconnect Paul feels. If the church and people in stewardship of what has been given to give to others is selective of seemingly perfect people, then the churches would be empty and the death on the cross to save the lost would be in vain. There is an opportunity here for all of them. “Speak and act as those who are going to be judged by the law that gives freedom, because judgment without mercy will be shown to anyone who has not been merciful. Mercy triumphs over judgment” (James 2: 11-13, New International Version).
The brothers would have to have a crucial conversation with their potential new partner and should give him the opportunity to decide. It should be a win-win for the expectations for all of them and planning is the biggest key. “Like soon-to-be-married couples, future business partners often fail to plan for the possibility that their working relationship will deteriorate due to irreconcilable differences or how the business assets will be divided in the event of ‘divorce’”(Landeo & Spier, 2014). Provided that they proceed as partners, a general partnership would be in order unless they can determine the tangible value each one is investing to begin with for the consideration of a limited liability company.
The main reason is the fact that “General partners manage the business and are permitted to bind the partnership. Limited partners may not participate in daily management of the business, do not have authority to bind the partnership, and remain primarily investors. Limited partners who do engage in daily management and operations jeopardize their limited partnership status” (Guerra & Melvin, pg. 453). Because of all three men should expect to contribute substantially in varying ways to the managing and daily work that will be required to maintain this type of business venture, all three should also be willing to be liable and accountable in the efforts, debts, and liabilities, if they all choose, that go in and the responsibilities that will be required. The ownership should be split into three and it should be clearly spelled out in their general written agreement of the duties each one should hold. For business sake, if any gray areas come up, there should be enough trust to resolve the any differences and face the challenges that are inevitable in running a business.
du Plessis, A. (2017). The Challenge of Business Partnerships. Accountancy SA, 14-15.
Retrieved from https://search-proquest-com.ezproxy.liberty.edu/docview/1922350270?pq-origsite=summon
Guerra, F. & Melvin, S. (2018). The Legal Environment of Business: A Managerial Approach:
Theory to Practice. New York, NY. McGraw-Hill Education.
Landeo, C. M. & Spier, K.E. (2014). Shotguns and Deadlocks. Yale Journal on Regulation,
31(1), 143-187. Retrieved from https://search-proquest-com.ezproxy.liberty.edu/docview/1542098847?pq-origsite=summon