The Partnership Mack and Biff were lifelong friends. Both had reached a stage in their lives where they wanted to strike

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answerhappygod
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The Partnership Mack and Biff were lifelong friends. Both had reached a stage in their lives where they wanted to strike

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The Partnership
Mack and Biff were lifelong friends. Both had reached a stage intheir lives where they wanted to strike out on their own with a newbusiness venture. Talking one evening and realizing that theywanted to head in the same direction, they decided to form apartnership. Mack had done well in his previous career and wouldbecome the money man. He would provide all the capital, pay all thestart-up expenses, purchase all the machinery, and open a bankaccount for the partnership flush with money for operations. Biffwas the contacts man. He knew all the suppliers and subcontractors.He had a lengthy customer database. He also knew the ins and outsof the business and how it should be run. Things went well for thefirst year. Unlike so many other businesses, theirs did well andstarting grossing well over $1 million, with a projection to reachmulti million dollars in contracts for the next year. That was whenMack noticed discrepancies in the bank account. When he asked aboutit, Biff openly admitted he had been taking out money when he feltlike making a personal purchase. After a heated argument, Mackcalled an attorney. He was told that the partnership account hadboth their names on it and that legally Biff could withdraw from itanytime he wanted. Biff told Mack that he would take whatever moneyhe wanted, when he wanted to. Mack said he would dissolve thepartnership and Biff told him that that was fine, but his buyoutwas $500k. After consulting an attorney again, Mack was told thatit was either buy Biff out, keep operating as things were, or shutdown the business completely and divide the assets. Mack had sunkhis entire life savings into this venture. Biff told Mack that ifthey dissolved the company, he would be taking his suppliers andcustomer database with him to start up again with a differentpartner. What can Mack do?
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