Does craig appear to be doing anything wrong

Reference no: EM131210440 , Length: word count:500

Partnership concerns

Craig Fraser and Michelle Mason set up a partnership to run a small retail business. Craig contributed $60 000 to begin the business and Michelle's contribution was $50000, craig is confident with numbers and accounting whereas Michelle prefers to deal with people and to ignore anything requiring numbers. Michelle has put her trust in Craig to set up the financial side of the business. Craig has decided that all profits should be distributed according to the initial capital contributions by each of the partners.

During the second year of operation Craig bought a new house and to finance the deposit he withdrew $20000 from his capital investment in the partnership. Michelle accepted that this was reasonable and did not even think about the implications for profit distribution. The following year Craig withdrew another $20000 from his capital investment in the partnership to reduce his house mortgage. Michelle accepted that as Craig had put the money into the partnership it was only fair that he could take it out again.

Craig and Michelle both worked actively in the business, and generally worked well together as business partners. They both were entitled to a salary of $30000 on the assumption that they would contribute equally to the management of the business.

A. Who are the stakeholders in this situation?

B. Does Craig appear to be doing anything wrong? Explain your response.

C. Are there any ethical issues involved here? If so, identify them.

Reference no: EM131210440

Questions Cloud

Explain the reasoning behind your predictions : Explain how the attentional blink relates to attention. Analyze how the variation in time influences the probability of seeing the second target letter. Explain the circumstances under which the attentional blink can be eliminated.

Calculate the payback period of each press : Hook Industries is considering the replacement of one of its old drill presses. Calculate the payback period of each press. Calculate the net present value (NPV) of each press. Using NPV, evaluate the acceptability of each press

Employee of a company doing business in another country : Imagine yourself as an employee of a company doing business in another country. Consider some of the misperceptions that could occur, from awkward language translations to colliding customs.

Draw a short run aggregate supply curve : Draw a short- run aggregate supply curve. - Why is the curve upward sloping? - What causes the short- run aggregate supply curve to shift?

Does craig appear to be doing anything wrong : Does Craig appear to be doing anything wrong? Explain your response - Are there any ethical issues involved here? If so, identify them.

Write the code to accomplish this task : A program needs to read a sequential access fi le, line by line, and display each line on the computer screen. The fi le is associated with the in File object. Write the code to accomplish this task.

Part of the entrepreneurial process : Why is entrepreneurial finance simultaneously both the least and most important part of the entrepreneurial process? Explain this paradox.

Company annual reports : Be certain that you choose a company that is of great interest to you, as you'll continue to study this company over the four modules. Be sure that you spend some time reviewing your chosen company's website, familiarizing yourself with the compan..

How does the economy return to long run equilibrium : Assume that the economy is originally in long run equilibrium and that there is a drop in demand.- Use graphs to explain how and why the economy initially moves to a short- run equilibrium with unemployment.

User Account

All Pages