Ken, a recent graduate of a professional accounting program, formed a partnership with a classmate, Lloyd, to

Question:

Ken, a recent graduate of a professional accounting program, formed a with a classmate, Lloyd, to provide various accounting services to small and medium sized businesses. Lloyd made a serious error in the preparation and presentation of a to a client. Ken is wondering about his responsibility for Lloyd’s mistakes. In particular, if Ken compensates the client for all losses, can he claim reimbursement from Lloyd? Would the answer be the same if Ken and Lloyd had several other partners? How should losses between partners be dealt with? How should Ken manage the risks associated with the form of carrying on a business?
Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment. Its primary purpose is to provide the... 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...