How Might a Partner Withdrawing in Violation of the Partnership

question 33

Essay

How might a partner withdrawing in violation of the partnership agreement and without the con-sent of the other partners be treated? What about a partner who is forced to withdraw?
Business Ethics Question from Textbook
Many companies with defined benefit plans are curtailing or eliminating the plans altogether.With a defined benefit plan, the company guarantees some set amount(or formula-determined payment) when the employee retires.Because most pension assets are invested in the stock market, whether a pension plan is fully funded of-ten depends on the strength of the stock market.Be-cause of this volatility, companies often find themselves unexpectedly in a position where they must either in-crease funding or disclose significant underfunding.Because of this, many companies simply reduce or eliminate the plan.Consider the pension plan of Golden Years Company (GYC).Historically, GYC has been a great company to work for, with strong employee benefits.GYC's pension liability is approximately $15 million.However, recently the company has been experiencing minor financial troubles in a decreasing stock market and, consequently, announced the termination of the pension plan in an effort to save costs.However, the pension plan was fully funded by$9 million (the fair value of assets exceeded the expected liability).

---

Definitions:

Proofreading Process

The act of reviewing written material to correct grammatical, spelling, punctuation, and formatting errors to ensure accuracy and clarity.

Social Media Networks

Online platforms that enable users to create content, share experiences, and connect with others.

Short Messages

Concise forms of communication, often utilized in texts, emails, or social media, aimed at quick information exchange.

Proofreading

The process of reading and correcting written material to ensure it is free of errors, such as typos, grammatical mistakes, and punctuation errors.