Bestpractices in the society are encouraged, that why it is theresponsibility of each business organization or entity to focus ondoing what is required of it by the law. Business ethics is aimed atensuring that business entities comply with the rules and regulationsthat would lead to best business practices. In this instance we aregoing to consider the case of Murphy who owned the Intertie Companyand formed limited partnership with other investors and later thecompany suffered financial difficulty.
Each of the limited partnership offerings do not qualify for privateplacement alone that is exempted from registration since none of theentities met the requirement for private placement exemption fromregistration. According to law for the limited partnership to qualifyfor this they should have no limit on securities sold, no limit onthe accredited investors in regards to their numbers and finallythere should be disclosure of the material of information andmaterial financial to the investors (IRS, 2015). This did not happenconsidering the case of Intertie where information was not disclosedto the investors.
The 30 limited partnerships offerings should be integrated, this isbecause the separate securities were made about the same time andwere of the same class. The securities are sold for the sameconsideration, the proceeds from this are used for the same purposefor which they were intended initially (IRS, 2015). From this we canconclude that there was sufficient evidence to integrate the limitedpartnerships. Murphy did something unethical as he went against thebusiness ethics by doing that which was condoned by the law. Anexample is hiding some information from the investors who formed thelimited partnerships.
IRS.(2015). Securitiesand Exchange Commission v. Murphy, 626 F.2d 633, Web 1980 U.S.ApLexis 15483 (United States Court of Appeals for the Ninth Circuit).