Susan and Erin operate a spa as partners and share profits and losses equally. Their business has

Question:

Susan and Erin operate a spa as partners and share profits and losses equally. Their business has been more successful than they expected and is operating profitably. Erin works hard to maximize profits. She schedules appointments from 8 a.m. to 6 p.m. daily and she even works weekends. Susan schedules her appointments from 9 a.m. to 5 p.m. and does not work weekends. Susan regularly makes much larger withdrawals of cash than Erin does, but tells Erin not to worry. "I never make a withdrawal without you knowing about it," she says to Erin, "so it's properly recorded in my drawings account and charged against my capital at the end of the year." To date, Susan's withdrawals are twice as much as Erin's.
Instructions
(a) Who are the in this situation?
(b) Identify the problems with Susan's actions. In what ways are they unethical?
(c) What provisions could be put in the agreement so that the differences in Susan's and Erin's work and withdrawal habits are no longer unfair to Erin?
Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...