discussion

Accounting Discussion

Partnerships are created via the execution of a partnership agreement by all parties. A
verbal agreement between participants will be enough to establish the partnership's existence and
scope, but a written agreement between parties makes resolving disagreements considerably
simpler. When a business collaboration ends, it does not necessarily end amicably. A partner
may fail to uphold a commitment. Violating a partnership agreement might subject the violators
to obligation, and the aggrieved parties can pursue various forms of redress in the court system.
Based on my analysis of the BYP 12-4 Ethics Case presented in the book, Alexandra,
Kellie, and their clients are the stakeholders. Kellie has to pick up the slack since Alexandra
never plays her part because she is deceptive about her work and withdrawal habits. In the long
run, this cannot continue. There are other issues with Alexander's alleged conduct, including her
use of partnership money to get a personal loan and the apparent commingling of her debt and
financial responsibilities with partnership activity. Any business dealing that leads to one partner
acting outside their power concerning the partnership may be criminal. It is also against the rules
for a partner to engage in transactions for their benefit if doing so will undermine the business
relationship between them.
If it is discovered that a partner has participated in what may be considered an unlawful
transaction on behalf of the partnership, the partnership transaction in question could be nullified
under the law. However, the partner may be held financially responsible for the partnership's
financial losses, reputational harm, or any harm caused by the partner's actions. Sometimes, a
partner's share of partnership income may be "disgorged" or returned to the partnership (Kang,
2018). Similarly, the partner may face disciplinary action from the partnership itself or
repercussions under both commercial and criminal law, such as the imposition of monetary
penalties.
Alexander's unethical behavior extends to several other situations as well. To begin with,
she has stopped updating her business partner on her progress and intentions. Then she has little
regard for her partner's job or leisure schedule. Respect, communication, and honesty are all
important ethical factors (Rybnicek & Königsgruber, 2019). To succeed in her career and
relationship, Alexandra must be open and forthright with both. She must also keep her spouse
apprised of her career and future aspirations. Finally, she ought to be considerate of her
husband's work schedule.
It is safe to assume that a partner who has broken the partnership agreement is not on
good terms with the other partners. Evading legal action at all costs is preferable, and the tactic
can help. If parties intend to avoid legal conflict, they can negotiate a solution (Markova &
Trapeznikov, 2016). Following a breach, the parties may be able to repair their commercial
relationships by agreeing to this provision.
Differentiating between Kellie's and Alexandra's withdrawal and work styles requires a
revision of the memorandum of understanding, and one option is to set distinct each partner's
expectations. For instance, Alexandra may be responsible for customer meetings and
administration, while Kellie does the bulk of the planning process. By doing so, the partners may
each concentrate on what they do best, and any inherent tensions can be avoided. To account for
the dissimilar withdrawal and work schedules, the signed agreement needs to be updated to set
the amount of time every party needs to work weekly and require a 14-day notice from a party
intending to exit.

References

Kang, B. (2018). The Effects of Dependence and Conflict on Qualitative and Quantitative
Organizational Performances in Partnership. Asia Marketing Journal, 20(2), 7.
Markova, V. D., & Trapeznikov, I. S. (2016). Modern forms of partnership in business. World of
economics and management/Vestnik NSU. Series: Social and Economics Sciences, 16(4),
109-119.
Rybnicek, R., & Königsgruber, R. (2019). What makes industry–university collaboration
succeed?