Partnership Operation and Distribution of profit/loss 1. Jay, a businessman, invited two friends to join him in a business venture. He is willing to invest his business and asked his two friends what their contributions will be. Michael, a balikbayan, would like to invest cash, but doubts he could actively participate in its management since he is in the Philippines only for a vacation. Nevertheless, he is eager to join the partnership with the condition that since he cannot actively participate he should be liable only to the extent of what he invested. Angelo must join the business since his expertise is needed for the type of venture Jay is contemplating to put up but does not want to make any capital contribution. QUESTION : Is it possible for the three friends to put up the business? Identify the roles they will play.
1. Jay, a businessman, invited two friends to join him in a business venture. He is willing to
invest his business and asked his two friends what their contributions will be. Michael, a balikbayan,
would like to invest cash, but doubts he could actively participate in its management since he is in
the Philippines only for a vacation. Nevertheless, he is eager to join the partnership with the
condition that since he cannot actively participate he should be liable only to the extent of what he
invested. Angelo must join the business since his expertise is needed for the type of venture Jay is
contemplating to put up but does not want to make any capital contribution.
QUESTION : Is it possible for the three friends to put up the business? Identify the roles they will play.
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