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Brown and Green Are Forming a Business as Partners

question 12

Essay

Brown and Green are forming a business as partners.If they do not create a formal written partnership agreement, what risks are they exposing themselves to?


Definitions:

Means Test

A method used to determine an individual's eligibility for certain types of financial assistance or legal aid, based on their income and assets.

Chapter 7

A provision under the U.S. Bankruptcy Code dealing with liquidation, where a debtor's non-exempt assets are sold and the proceeds distributed to creditors.

Chapter 13

A section of the United States Bankruptcy Code that allows individuals with a regular income to create a plan to repay all or part of their debts.

Bankruptcy Estate

In bankruptcy proceedings, all of the debtor’s interests in property currently held and wherever located, as well as interests in certain property to which the debtor becomes entitled within 180 days after filing for bankruptcy.

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