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statuscvo [17]
3 years ago
6

Do you think it’s ethical for a general partnership to fire a partner by dissolving the partnership and then re-forming without

the dismissed partner? Why or why not?
Business
1 answer:
Bond [772]3 years ago
3 0

Answer:

The answer to this question is, it depends on the motive for the dissolution.

Explanation:

Partnerships can be very rewarding. Yet they are the most unstable of all the legal personalities which can be created for the purpose of for-profit operations or not-for-profit operations.

The dissolution of a partnership can happen for any of the following reasons:

  • Bankruptcy
  • Change in business practices  
  • Death
  • Partner negligence
  • Poor cash flow and  
  • Retirement

If a person maliciously deploys any of the scenarios as an excuse to dissolve the partnership, then it becomes unethical. This, of course is difficult to prove. A very unethical case would be to dissolve a partnership a partnership, make away with business secrets to start another. If this is discovered and can be proven, the aggrieved party may seek redress in the law court.

Cheers

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