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A Business Case from ACCTBA2, Term 2, A.Y. 2013 - 2014 under Mr. Paulo Dalaota.
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BUSINESS CASE
Presented to the
Accountancy Department De La Salle University
In partial fulfillment
Of the course requirements In ACCTBA2 K42
Luzuriaga, Ivan Chris T.
November 6, 2013
a.) Who are the stakeholders in this situation?
If we are going to look at an Accounting point of view, that stakeholders are
Aphrodite and Venus since they are the ones operating the business and investing in it.
b.) Identify the problems with APHRODITE’s actions and discuss the ethical
considerations of her actions.
First of all, Aphrodite seems to be a little more multistream in management than
Venus’s mainstream style of management. With that said, she isn’t maximizing the time
that she has. She’s already operating on shorter time periods and she takes longer
lunch breaks so I see that she mostly takes her time with things thus losing the time she
could be making profit like Venus although Venus, I think, is borderlining on abusing the
physical abilities of her workers and even herself although she is maximizing profits and
time.
Another problem with Aphrodite is that she makes so many withdrawals although
I don’t know exactly if it’s so significant with her life that she just has to. She’s not
maximizing profits and time like Venus is so I don’t see how she can be so okay with
just withdrawing money. If she tried adjusting time and her activities, she could be
doubling her profits but unfortunately, her withdrawals are getting doubled instead.
Regardless though if she’s maximizing her time for profit, she shouldn’t be making as
much withdrawals as she should because by the end of the accounting period, she
might not make as much as she should be making due to the amount of withdrawals
she has incurred throughout the period.
To Aphrodite, it’s okay to do these things so long as it is agreed upon and
everything is openly discussed. An example of this would be when she takes longer
lunch hours. Aphrodite and the workers are getting a solid amount of rest time but
sacrificing the time they could be making along the way. Another is her transparency
and openness to Venus. Aphrodite said it’s okay to withdraw the money because she’s
being open about it to Venus and everything will be charged to Aphrodite’s capital
account anyway but to me, that isn’t a valid excuse to just keep withdrawing money.
c.) How might the partnership agreement be revised to accommodate the differences in
APHRODITE’S and VENUS’S work and withdrawal habits?
First, they could use Venus’s time for scheduling appointments and at the same
time take lunch breaks so that they could get a break out of all the work they’re doing
and at the same time maximizing time for profit.
Second, they could agree on a withdrawing limit and have a limit set for both of
them equally so that neither is tempted to take more than what they can. It’s either that
or Venus becomes a limited partner so that whatever her capital contribution is be just
hers so that her money is safe and that if ever Aphrodite does withdraw too much,
Venus would not be liable for it. It’s also that or there should be a sanction who breaks
the withdrawal limit and be liable for damages and interest on the withdrawals made so
there is discipline.