It is always difficult to terminate a business, especially after you have invested so much time, effort and money in the company. What makes it even more complex is going into business with others whom you expected to help the business succeed, yet it does not end up that way. For this case scenario, Chris and Pat Smith, and the two chefs, J. P. Martin and L. L. Miller, need to get together to make some tough decisions on potentially dissolving the business At Your Service. Chris and Pat Smith want to dissolve the business, but Miller is asking to have the business transferred to her and Martin. Assuming Chris and Pat Smith agree to transfer At Your Service to Martin and Miller, and Martin and Miller continue to run the catering business the following issues would need to be resolved: • How the $15,000 left in the investment would be split.
• How to handle the lease on the rented space, which has 18 months more to run. • How to handle the lease for the van, which has 18 months more to run. • How to handle the lease on for the kitchen equipment, which as six months more to run. Chris and Pat Smith, and Martin and Miller decided it was best to have a termination contact set in place to secure all partakers in their final decisions. They noted it was best for all to have precise, clear explanations all of all essential fundamentals for the termination of their business partnership. An acknowledgement of the effective termination date would need to be set, and all potential risks, if any, should be stated for all parties. The owners and the chefs would meet for a period of 30 minutes and try to dissolve their partnership. The owners and the chefs blame each other for the failure of At Your Service; however, all partakers should act as responsible, mature adults during the meeting. It would speed up the termination process; especially if all partakers can comprehend they all had a part to play and it is not one single persons fault for the failure of the...
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