Case Scenario:
Like most young professionals, earning a reasonable livelihood ranked as a top priority for Scott Fane, a CPA specializing in taxation services who relocated to Florida in the mid-1980s. To practice as a CPA in Florida, Scott Fane registered with the Florida Board of Accountancy, which regulates the public accounting profession within the state of Florida. Scott Fane soon butted heads with that state agency. A protracted legal battle ensued. In 1993, the young CPA and the Florida Board of Accountancy finally settled their differences in the hallowed chambers of the U.S. Supreme Court.
QUESTIONS:
Q1. In a professional services context, "lowballing" refers to the practice of underpricing one's competition to obtain clients. Identify the advantages and disadvantages of lowballing within the public accounting profession. Also identify the parties who benefit from this practice and the parties it harms.
Q2. Comment on the advantages and disadvantages of professions being regulated at the state, rather than federal, level.