SPECIFIC BUSINESS CASE
1T AY 2013-14
Research: Accounting subsequent edition. Waren, C., Reeve, J., and Duchac, J. ( with slight modifications)
Case 1 ) Partnership arrangement
Jose Reyes, M. D. and Joseph Luke, M. D. are sole owners of two medical procedures that run in the same medical building. The two doctors agree to combine assets and liabilities of the two businesses to form a relationship. The alliance agreement necessitates dividing income equally between two doctors. After a while, the following chat takes place between the two doctors:
Reyes: I possess noticed that the patient load has dropped over the last month or two. When we shaped our partnership, we were viewing about the same volume of patients a week. However , now our affected person records show that you have recently been seeing about 50 % as many people as I include. Are there any released I should keep in mind?
Luke: I realize. Well, We find that We am operating as hard as I would when I was on my own, however making much less that I would previously. Essentially, you will be sharing by 50 % of my billings and I am posting in half of yours. Since you are working a lot less than I actually am, My spouse and i end up on the short end of the bargain.
Reyes: Well, I how to start what to say. An agreement is an agreement. The partnership is founded on a 50/50 split. Gowns what a partnership is all about.
Henry: I that is certainly so , then it applies equally well around the effort end of the formula as within the income end.
Answer the following:
1 . Go over whether Reyes is behaving in an honest manner.
2 . How can Luke renegotiate the alliance agreement in order to avoid dispute?
Case 2 . Relationship Income
Jaclyn Dantes and Bonita Perez decide to contact form a alliance. Dantes is going to contribute P300, 000 for the partnership, when Perez can contribute P100, 000. However , Perez will be responsible for running the everyday operations in the partnership, which can be anticipated to need about forty five hours per week. In contrast, Dantes will only operate five hours per week pertaining to the relationship. The two associates are attempting to identify a formulation for dividing partnership net income. Dantes believes the companions should divide income in the ratio of 7: 3, favoring Dantes, as Dantes supplied majority of the capital. Perez feels the income should be divided 7: three or more, favoring Perez, since Perez provides most the effort in running relationship business.
Just how would you suggest the partners in designing a method for separating income?
. Short relationship paper
. Double spaced
. 1 inch perimeter in all attributes
. Minimum of two pages (not including the
cover page and the business case page)
. Affix this page as the last page of your record
. Font: Tahoma 11
. Cover page:
A small business case
Shown to the
De La Salle University
In partial fulfillment
Of the program requirements
. in ACTPACO (sec).
Surname, 1st Name, M. l.
An enterprise case
Presented to the
De La Assemblee University
In partial fulfillment
Of the training course requirements
. in ACTPACO K37
Yamauchi, Arvin Ray
This summer 11 2013
Case one particular
Discuss whether Reyes is usually acting within an ethical manner.
Yes, Pretty much, Reyes is usually acting in an ethical method because we will not forget that partnerships are made for the purpose of income. Reyes was just a worried businessman looking to catch the attention of his underperforming partner. What made me say that it was time that Reyes confronts his spouse on for what reason Luke can be underperforms. Within a practical impression, partners improve their families and invest for the future. Mr Reyes is just looking to ask if perhaps why Luke has been seeing smaller patients than usual. Of course fees that pros like doctors have some down-time as well. Returning to alliance, Partnership must be measured in contribution, whether at begin of...