Cindy, a 20% General Partner in the CDE Partnership, Wants

question 4

Essay

Cindy, a 20% general partner in the CDE Partnership, wants to retire and has approached the other partners about having the partnership buy her out. The partnership is a cash basis, service oriented partnership in which Cindy is an active partner. The partnership's assets consist primarily of unrealized receivables and cash. The partnership also has substantial going concern value (goodwill) which is probably its most valuable asset. The other partners in the partnership are also active in the business and are not related to Cindy.
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Discuss from Cindy's viewpoint how you would structure the liquidation of her interest under § 736. Answer as if you are her advocate. Do you think the other partners will agree with this structure? If not, what structure would they prefer?

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Definitions:

Labor Intensive

Describes industries or processes that require a large amount of labor to produce goods or services, often involving significant human effort and minimal automation.

Slaves

Individuals forcibly held and compelled to work without freedom or personal rights.

Task System

A labor system, particularly used in the context of slavery, where enslaved individuals were assigned specific tasks to complete each day.

Autonomy

The right or condition of self-government, often within a larger organization or nation, allowing for a degree of independence in decision-making processes.