Retrieved from https://studentshare.org/finance-accounting/1677627-accounting
https://studentshare.org/finance-accounting/1677627-accounting.
Robbins and Barrows Partnership Robbins is acting in an unethical way. Robbins is taking advantage of the partnership by putting in less work while enjoying the same benefits as Barrow, who is tirelessly working to ensure that the partnership is a success. It is evident that both parties have a 50-50 stake in the business and therefore should share tasks and income equally. Judging by Robbin's reaction, it is clear that he is not driven towards improving the business, but rather he fancies the partnership as it allows him to enjoy life while still raking in big income.
Before the merger, he was unable to abandon his job due to fear of losing both revenue and customers. But now that he has a colleague that is hardworking and willing to go the extra mile to ensure the business is a success, he does not think twice about leaving. Barrow should renegotiate the agreement and make several changes. First of all, the 50-50 term should be changed, such that each person is paid according to the amount of work he has done or the total weekly hours that he has worked. Holiday work and extra hours should also be compensated.
He should also include in the agreement that each member can get live periodically as the other member works. If Robbins still wants them to share the income on a 50-50 basis, then Barrow should also inform him that work is also to be shared equally. Barrow should notify him that he has a family too that he would like to spend time with and it would not be fair if he spends all his time and energy in the business while Robbins is busy enjoying himself. If Robbins declines these terms, then it would be plausible if Barrow worked alone as he is getting short-changed.
Read More