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  • Writer's pictureRyan Shafer

What Is A General Partnership?

long-time friends from college, met for lunch at a restaurant and Ashley started to talk about the chlorine problems she was having with her swimming pool. Jeff, a chemical engineer, was intrigued and started offering possible solutions. As they were talking, they started to get excited with the prospect that Jeff’s pool ideas could actually be a basis for a real pool chemical business. A few days later, Ashley, who has a background in marketing and business, emailed Jeff her suggestion for a business model that she believed would work for the pool business. On a phone call soon afterward, Jeff told Ashley that he was serious about starting the pool business. Ashley responded that she would love to be part of it, and would be willing to lead the marketing side of the business. Jeff and Ashley agreed to share profits and losses and they both contributed money to set up the business.

In this example, have Ashley and Jeff formed a partnership?



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