Three Doctors Marshall Murrey Andrew Shaw and Austin Taylor Opened

question 191

Essay

Three doctors Marshall Murrey Andrew Shaw and Austin Taylor opened a family medicine clinic. All three doctors had been lifelong friends. All belonged to the same religious faith. All were very active in church affairs and tried to mold their professional behavior to their religious beliefs.
About a year ago Dr. Murrey announced that he was leaving the church. The others noticed that his personality also began to change. He began to dress in flamboyant styles and he started wearing expensive-looking jewelry. His temper became unstable-one minute he was calm and the next he might be throwing charts down the hall and screaming. He started coming to the office late and forgetting to see some of his patients before he left again. The other two at first were stunned at the changes. His wife asked them whether they thought he might have a drinking problem. After finally deciding to investigate they found what looked to them like a large amount of cocaine (hundreds of plastic sacks of white powder) tucked away in boxes of old medical equipment.
Frightened Drs. Shaw and Taylor decided to act quickly. Their partnership agreement said nothing about dissolving the partnership-only about what to do if one of them died. They therefore secretly rented office space across town and began to move the most necessary equipment and supplies to the new office. A month later they changed the locks on the old office and began seeing patients in the new office without any notice to Dr. Murrey at all. Dr. Murrey simply came in at around ten o'clock as usual and found himself locked out of an empty office.
Required:
Did Drs. Shaw and Taylor act ethically in their ending of the partnership? Explain.

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Definitions:

Effective Yield

A measure of the actual rate of return earned on a bond or fixed-income investment, taking into account the effect of compounding interest.

Present Value Factors

Mathematical factors used to calculate the present value of a future amount of money or stream of cash flows given a specified rate of return.

Yield 10%

Represents the annual return on an investment, expressed as a percentage of the investment's cost. Here, the investment is expected to return 10% annually.

Bond Interest Expense

The cost that an issuer of bonds incurs over the bond term as interest payments to bondholders, as dictated by the interest rate of the bond.