Yang and Sammi operate a beauty salon as partners who share profits and losses equally. The success of their business has exceeded their expectations; the salon is operating quite profitably. Sammi is anxious to maximize profits and schedules appointments from 8 a.m. to 6 p.m. daily, even sacrificing some lunch hours to accommodate regular customers. Yang schedules her appointments from 9 a.m. to 5 p.m. and takes long lunch hours. Yang regularly makes significantly larger withdrawals of cash than Sammi does, but, she says, “Sammi, you needn’t worry, I never make a withdrawal without you knowing about it, so it is properly recorded in my drawings account and charged against my capital at the end of the year.” Yang’s withdrawals to date are double Sammi’s.

Instructions
a. Who are the stakeholders in this situation?
b. Identify the problems with Yang’s actions and discuss the ethical considerations involved.
c. How might the partnership agreement be revised to accommodate the differences in Yang’s and Sammi’s work and withdrawal habits?