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Eric and Ginny equally own and manage A New Beginning ( ANB ) , a store that sells preowned clothing and furniture. Eric is responsible
Eric and Ginny equally own and manage A New Beginning ANB a store that sells preowned clothing and furniture. Eric is responsible for ANB's backoffice activities, and Ginny staffs the store and makes deliveries to customers. Both have equal decisionmaking authority and, under the terms of their partnership agreement, both are prohibited from making personal purchases using company funds without prior approval of the other partner. Eric, without Ginny's knowledge, used the company's bank account recently to purchase a new sports car. Eric has acknowledged that the car will not be used to support the business.
Is this a potential agency conflict between Eric and Ginny?
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