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Pursuant to an oral agreement, Andy and Jeff formed a partnership to do kitchen remodeling. It was agreed that Andy was to invest 10,000 and manage the business affairs. Jeff, who would invest 1,000, was to work as a job superintend and manage the work. Profits were to be split fifty-fifty, but possible loses were not discussed. The business proved unprofitable, and Andy brought action against Jeff for one-half of the losses. To what extent is Jeff liable? Explain.

Operation Management, Management Studies

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