To some extent, this sums it all but, its one sided. It only centers on the chances that your friend won't run away with company funds but, don't say much about managing or running a business.

Though, it is important that, one have a steady cash flow so as to be able to separate himself from the business. We know business is a separate entity of its own, it ought to take care of itself while, you can benefit from the profits it generates after settling all that need be in running the business, encroaching would lead to some gradual decline for sure.

But again, before going into a partnership business with anyone, it must be someone you've really known all about and your sure could separate himself from the business. That's just how your likely to have a successful business and you shouldn't leave all the managing to your partner. The business should operate a double signatory account and ensure you get mails on happenings within the business and finance.