Ethical Case Study Case Summary: Dr. B and Dr. R are sole owners of two medical practices that operate in the same medical building. The two doctors agree to combine assets and liabilities of the two businesses to form a partnership . As per the partnership agreement the income will be divided equally between two doctors. After several months of partnership a conversation took place between the two partners, where Dr. B said Dr. R that he had noticed that the patient load of Dr. R has dropped over the last couple of months. When they formed partnership they both were seeing same number of patients per week, but the present patient record of Dr. R shows that he is seeing half as many as patients seeing by Dr. B. So Dr. B enquired if there is any issue with Dr. R which he should be aware of. Dr. R responded that there was no issue and one of his reasons of joining partnership was that he wanted to enjoy his life little more and scale back a little bit. To which Dr. B said that he is working as hard as when he was on his own, but making less money than previously. He said both of them sharing half of each other billings, and as Dr. R is working less than him so he is ending up on the short end of the bargain. Dr. R responded that it’s the agreement, and partnership is based on 50/50 split. To which Dr. B replied that it should be applied to the effort end of the equation as that is applied to the income end. To discuss: If Dr. R is acting in ethical manner and how Dr. B can renegotiate the partnership agreement to avoid the dispute?
Ethical Case Study Case Summary: Dr. B and Dr. R are sole owners of two medical practices that operate in the same medical building. The two doctors agree to combine assets and liabilities of the two businesses to form a partnership . As per the partnership agreement the income will be divided equally between two doctors. After several months of partnership a conversation took place between the two partners, where Dr. B said Dr. R that he had noticed that the patient load of Dr. R has dropped over the last couple of months. When they formed partnership they both were seeing same number of patients per week, but the present patient record of Dr. R shows that he is seeing half as many as patients seeing by Dr. B. So Dr. B enquired if there is any issue with Dr. R which he should be aware of. Dr. R responded that there was no issue and one of his reasons of joining partnership was that he wanted to enjoy his life little more and scale back a little bit. To which Dr. B said that he is working as hard as when he was on his own, but making less money than previously. He said both of them sharing half of each other billings, and as Dr. R is working less than him so he is ending up on the short end of the bargain. Dr. R responded that it’s the agreement, and partnership is based on 50/50 split. To which Dr. B replied that it should be applied to the effort end of the equation as that is applied to the income end. To discuss: If Dr. R is acting in ethical manner and how Dr. B can renegotiate the partnership agreement to avoid the dispute?
Solution Summary: The author explains that Dr. R isn't acting ethically. He's not seeing more patients, but he'd like to enjoy his life and scale back.
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.
Chapter 12, Problem 12.1CP
To determine
Ethical Case Study
Case Summary:
Dr. B and Dr. R are sole owners of two medical practices that operate in the same medical building. The two doctors agree to combine assets and liabilities of the two businesses to form a partnership. As per the partnership agreement the income will be divided equally between two doctors. After several months of partnership a conversation took place between the two partners, where Dr. B said Dr. R that he had noticed that the patient load of Dr. R has dropped over the last couple of months. When they formed partnership they both were seeing same number of patients per week, but the present patient record of Dr. R shows that he is seeing half as many as patients seeing by Dr. B. So Dr. B enquired if there is any issue with Dr. R which he should be aware of. Dr. R responded that there was no issue and one of his reasons of joining partnership was that he wanted to enjoy his life little more and scale back a little bit. To which Dr. B said that he is working as hard as when he was on his own, but making less money than previously. He said both of them sharing half of each other billings, and as Dr. R is working less than him so he is ending up on the short end of the bargain. Dr. R responded that it’s the agreement, and partnership is based on 50/50 split. To which Dr. B replied that it should be applied to the effort end of the equation as that is applied to the income end.
To discuss: If Dr. R is acting in ethical manner and how Dr. B can renegotiate the partnership agreement to avoid the dispute?
Windsor Manufacturing planned to use $90 of material per unit but actually used $88 of material per unit. The company planned to produce 1,500 units but actually produced 1,200 units. What is the sales-volume variance? provide answer
College Accounting, Chapters 1-27 (New in Account...AccountingISBN:9781305666160Author:James A. Heintz, Robert W. ParryPublisher:Cengage Learning
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning