Flashcards
Untitled
Cards in this deck (22)
- 1How long has the partnership lasted?Five years
- 2Profits in last two financial years£65,000
£75,000 - 3Salaries?£40,000
- 4Who wants to leave? - Reason?Ross
- Unhappy and no prestigious clients - 5What arrangement did they enter into when they set up in business?Partnership
- 6Terms of the partnershipEach partner paid £15,000 in capital
Profits shared equally
Partner wishing to retire must give 6 months notice - 7No mechanism requiring __?Partner to offer his share of the business for sale to the other or providing for valuation of the business
- 8How much do they think the business is worth?Conservative estimation: £250,000
- 9Profits for first 6 months training of this year - More of less than first of past two years? - Why?£20,000 each
- Less
- Increased employees from 6 to 8 - 10Legal position is such that, if desired, either party could __? - What would this involve?Dissolve the partnership by notice and have its affairs wound up
- Assets being sold off
Credits paid
Proceeds of sale and remaining proceeds being divided by parts - 11Alex is aware that Charlie __?Is very ambitious and assumes he has an ulterior motive
- 12Alex knows that Roberts __?Is keen to expand the partnership's business but also knows this would need a large amount of capital to succeed
- 13Major concern of Alex is that Roberts __?Should not have an opportunity to solicit existing clients
- 14Alex would like to __?Impose a restrictive covenant on Roberts than he cannot solicit any of the partnerships clients for 1 year after his departure
- 15Alex would like Roberts to __? - It would also __?Serve the entire notice period as this would give more time to prepare the business for his departure
- Allow more time to deal with the financial aspects of having to buy his share of the partnership - 16Alex believes that if the partnership was dissolved __? - This is because __?There would be almost nothing for the partners
- Major assets used by the firm (premises and equipment) are leased - 17Maximum which Ross would pay Roberts is __?Return of original capital £15,000
Share of business £115,000
Salary - pro rata for each month until departure
Share of profits - Pro rata for each month until departure - 18Alex believes she has __?Played a greater role in developing the firm's client base
- 19Alex would look to reduce the figure of £115,000, should __?Roberts leave within 6 months
- The amount decreasing more the shorted the notice period is srved - 20How would she pay Moss?She would be able to raise bank finance and/or attract another partner to assist
- 21How much does Alex currently have to secure Robert's share? - How long would she like to pay the value over?£30,000
- As long as possible - 22Moss has not yet given you __?Authority to settle on her behalf but would like to return with a negotiated proposals which meets her interests
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- Flashcards on Untitled, created by Jordan Quigley on 10/09/2020.
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- Jordan Quigley
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