Introduction
Businesses must adopt some legal procedures to ensure that the rights of the participants are observed, business control is observed and there is a strategic way of financing and sharing the profits (Bryman & Bell, 2015). Decisions made by the business owners usually have long-term effects on the business and the owners.
Dazzling Doggies Day Spa
The best business organizational form given to Dazzling Doggies is a partnership because the start-up costs for opening the grooming pet shop are being contributed by several people; Laura, her mother Beth and Adam. Therefore, all the partners must set the agreements on how they will run the business, share profits and resolve disputes in case they arise. After starting the pets shop, it might not last for a long time because one of the partners, Beth, don’t want to participate in the day-to-day operations within Dazzling Doggies and doesn’t want to have a personal liability in the business but she wants to have a share of the profits. Her terms in the business might lead to crisis and in turn, lead to the break-up of the partnership.
Delegate your assignment to our experts and they will do the rest.
Business ethics are the proper practices carried out within a business premise. It is therefore not ethical for Adam to use Dazzling Doggies checking account to pay for his personal bills (Zadek, Evans & Pruzan, 2013). In addition, it’s behind the back of the other partners. His practices will lead to reduced profits to be shared because he is spending some of the profit gained by the business. His continued practices of paying bills using the shops checking account can even lead to the bankruptcy of the partnership.
Conclusion
The type of partnership practiced by Laura, Adam, and Beth is inappropriate. A good partnership should have all the partners contributing in the business and openness must be observed in running the business. In their scenario, one of the partners does not want to take part in running the business but she wants a share of the profits. Additionally, Adam is paying his personal bills from the partnership shop without the knowledge of the others which pouts the business at a risk of bankruptcy.
References
Bryman, A., & Bell, E. (2015). Business research methods . New York: Oxford University Press, USA.
Zadek, S., Evans, R., & Pruzan, P. (2013). Building corporate accountability: Emerging practice in social and ethical accounting and auditing . New York: Routledge.
