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Part III: Protecting Yourself from Self-... > Agreeing on Contributions to the Rel...

Chapter 25. Agreeing on Contributions to the Relationship

Outside of marriage, no arrangement places more demands on the Mutual Reward Theory than a 50/50 business partnership. This is true because the legal structure of a partnership is designed to establish an equal reward system that is nearly impossible to maintain. Each partner is supposed to contribute equal energy, talent, hours, and capital to the success of the business. When one partner perceives that the other is not contributing equally, a conflict can surface.

NOTE

Beth and Carol Ann decided to open a day-care center as a 50/50 partnership. They spent hundreds of hours researching and planning the operation. But neither took time for a close look at the kind of relationship they could develop and maintain. Were they compatible? Did they understand the division of duties? Could they make it work? After both families contributed their savings—and took out second mortgages—they launched the operation with great success. The profit the first year was greater than either Beth or Carol Ann had hoped to achieve. Even so, the business eventually failed. Neither Beth nor Carol Ann could maintain an ongoing acceptable working relationship because neither could agree on the level of contribution the other was making to the business.


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