A formed partnership brings with it different obligations to your fellow partner and third parties. From...

A formed partnership brings with it different obligations to your fellow partner and third parties.

From an ethical perspective, what obligations does one partner have toward her fellow partners?
Are the ethical obligations of a partner to her fellow partners the same as her legal obligations?
What moral obligations does a partner have to her fellow partners in dealing with third parties?

Expert Solution

Partnership is the type of business organization where there are two or more parties involved. The partners have begun the business by contributing some initial investment or capital in the business. They enter into an agreement called the partnership deed. The sharing of the profits and losses will be according to the terms and conditions in the partnership deed. The ethical obligation of the partner is that they should be truthful and honest with each other. Their should be no intention of cheating the other partners and overtaking the business to oneself. The ethical obligations are not same as the legal obligations. The partners are in a fiduciary relationship with each other. They should always keep the partnership in mind and take all decisions. The interest of the partnership should be above the interest of the individual partners. The partners are also personally liable to the business. This means that if the debt of the partnership is not paid off from the company's assets then the partners are personally liable to pay the debt. The moral obligation includes the fact that the partners should work for the welfare of the business and try to make it profitable.

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