Assume That You and Your Best Friend Have Decided to Form

question 14

Essay

Assume that you and your best friend have decided to form a partnership after graduation.You have both studied business law,so you both know the importance of having a written partnership agreement.Summarize the clauses that you would include in your partnership agreement.

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Definitions:

Wage Rates

The fixed amount of compensation paid to employees for their labor, typically expressed as payment per hour or per month.

Income Effect

The alteration in a person's or an economy's earnings and the effect of this alteration on the demand for a specific product or service.

Substitution Effect

The economic principle that as prices rise or incomes decrease, consumers will replace more expensive items with less costly alternatives.

Real Wages

Real wages refer to the purchasing power of wages, taking into account inflation, showing the quantity of goods and services that can be bought.