Problem

Brenda Wilson, Elizabeth Higgins, and Helen Poncelet form a partnership as a first step...

Brenda Wilson, Elizabeth Higgins, and Helen Poncelet form a partnership as a first step in creating a business. Wilson invests most of the capital but does not plan to be actively involved in the day-to-day operations. Higgins has had some experience and is expected to do a majority of the daily work. Poncelet has been in this line of business for some time and has many connections. Therefore, she will devote a majority of her time to getting new clients.

Required

Write a memo to these three partners suggesting at least two different ways in which the profits of the partnership can be allocated each year in order to be fair to all parties.

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