Abby and Betty are licensed massage therapists. They met while studying to become licensed massage therapists in California. After passing their licensing exam, they often worked at the same massage spas. They became friends who often ate their lunch and took their breaks together. They enjoyed visiting other massage spas in their spare time to see what some of the other masseuses were doing and to look for a spa that they could buy.
One day Abby told Betty about a massage spa for sale. They visited the spa and liked what they saw. The purchase price was within their budget. After investigating and doing their due diligence, Abby and Betty purchased the business as 50/50 owners.
What type of agreement should Abby and Betty have for their new business. [Note: This question is not about the organizational structure of the business, and how the business engages the outside world. This question is about how the two partners interact with each other and how they are going to run the business and share in the profits and losses. It is about the business itself.]
Identify 10 key issues that Abby and Betty should address; explain why the issue is important and how you think it should be handled. Number each issue in numerical order: e.g., 1, 2, 3, …
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