ABSTRACT
Longyao County Automatic Door Factory (hereinafter the factory), located at the Nanbaishe Village, was a small casting enterprise established by Zhang Zhongshan (hereinafter ZZ). In April 1994, ZZ and Yan Guoping (hereinafter YG) verbally agreed to run the factory as a partnership, stipulating that ZZ and YG shared equally (50:50) in the distribution of profits and assumption of risks. In addition, they agreed that ZZ should be responsible for production and daily management, whereas YG would be responsible for sales. During the time of the partnership, Yan Guoan, the brother of YG, was employed as the accountant, while Wang Yongqin, the wife of ZZ, was employed as the cashier. Both of them were responsible for the financial affairs of the partnership.
