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Ask the Tutor ACCA LW

Partnership

AAbror10y ago
Agreement provision: Competition... I didn't get this point...How can any partner compete with the firm? Could you explain with an example..? Thanks...
MikeLittleMikeLittleTutor10y ago#1
Where there is a firm of accountants and one of the partners meets a person in a bar in the evening. The person tells that he had a meeting today with one of the other partners of the firm with a view to appointing the firm as his accountants, but he was reluctant because the fee quoted seemed very high at $2,000 Our man at the bar says to this prospective client "I will do the job for $1,500 but this arrangement is strictly between the two of us. No one else should know" That's how one partner can compete with the firm
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