The Partnership

Mack and Biff were lifelong friends. Both had reached a stage in their lives where they wanted to strike out on their own with a new business venture. Talking one evening and realizing that they wanted to head in the same direction, they decided to form a partnership. Mack had done well in his previous career and would become the money man. He would provide all the capital, pay all the start-up expenses, purchase all the machinery, and open a bank account for the partnership flush with money for operations. Biff was the contacts man. He knew all the suppliers and subcontractors. He had a lengthy customer database. He also knew the ins and outs of the business and how it should be run. Things went well for the first year. Unlike so many other businesses, theirs did well and starting grossing well over $1 million, with a projection to reach multi million dollars in contracts for the next year. That was when Mack noticed discrepancies in the bank account. When he asked about it, Biff openly admitted he had been taking out money when he felt like making a personal purchase. After a heated argument, Mack called an attorney. He was told that the partnership account had both their names on it and that legally Biff could withdraw from it anytime he wanted. Biff told Mack that he would take whatever money he wanted, when he wanted to. Mack said he would dissolve the partnership and Biff told him that that was fine, but his buyout was $500k. After consulting an attorney again, Mack was told that it was either buy Biff out, keep operating as things were, or shut down the business completely and divide the assets. Mack had sunk his entire life savings into this venture. Biff told Mack that if they dissolved the company, he would be taking his suppliers and customer database with him to start up again with a different partner. What can Mack do?

Please complete the case study using the following format:

1. Determine the facts. (the ones relevant to the ethical issue)
2. Identify the ethical issues involved.
3. Identify stakeholders and consider the situation from their point of view.
4. Identify available alternatives.
5. Compare the alternatives based on: ( Consequences for each stakeholder, Duties, Rights, and Principles, implications for personal integrity and character)
6. Make a decision. (what should happen?)

please answer all 6 parts to my question!