Solved

Reference - Grooming Losses

question 3

Multiple Choice

Reference - Grooming Losses. Wally, Beverly, and Matthew formed a partnership to groom dogs. Unfortunately, the business did not go as well as expected and the partnership incurred some losses. The articles of partnership did not allocate profits or losses. Matthew claimed that he should not have to share in losses because he had groomed more dogs than anyone. Matthew also claimed that although the partnership did not reference compensation for additional duties, he was entitled to compensation because of his excessive work. Beverly claimed that she should not have to share in losses because she contributed more capital than did either of the others. Wally claimed that he should not have to cover the losses because both Beverly and Matthew had been hiding the books from him. He demanded to inspect the books and also to a review and listing of all partnership assets and profit. Beverly and Matthew denied that Wally was entitled to a review of the books and stored them in a safe deposit to which only Beverly had a key. They claimed complete innocence of any wrongdoing. Which of the following is correct regarding Matthew's claim to additional compensation based upon the amount of work he was doing?

Definitions:

Managing by Exception

A management strategy where leaders only intervene in operations when performance metrics fall outside of pre-set acceptable ranges.

Organization Charts

Visual diagrams that depict the internal structure of an organization, including the relationships and relative ranks of its parts and positions.

Chain of Command

A system that establishes authority and accountability in an organization by assigning each member a specific rank and a clear line of superiors and subordinates.

Task Controls

Mechanisms or procedures set in place to direct, manage, and monitor the completion of tasks.