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April 11, 2024

Partnership Liability and Success Factors Discussion

Farah and David decide to form a sports memorabilia retail partnership. They have

known each other since business graduate school and have always worked well

together on various projects. The business is doing well but cash ﬂow is very tight.

Farah takes several calls from vendors asking for payment. He believed David had been

paying the bills. When he asks about this, David admits to embezzling from the

partnership.

●What liability does Farah face as a result of the theft?

●Are you for or against a partnership? Please explain.

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