Edna, Fiona, and Gwyn form a limited partnership to make and test-market Happy Donuts and other bake-at-home pastries. To avoid a dispute in the event of the firm's dissolution about how its assets should be valued and distributed, and whether the business should be sold, the partners should seek

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A buy-sell agreement would establish a method for valuing the business assets and distributing them in case the partnership dissolves, preventing disputes about the process. A safe harbor only provides protection against penalties for certain actions, a court decree would require legal action and potentially lengthy court proceedings, and an impairment circumstance refers to a decline in value of a specific asset, which may not be relevant in this situation.

Edna, Fiona, and Gwyn Form a Limited Partnership to Make