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I'd like to gather other's thoughts & opinions regarding the perception of the following scenario and whether or not the appearance of general affiliation exists and whether or not there are any ethical concerns? Company A had an employee who left approximately 3 years ago to start his own company, Company B. Company B is in the same line of work as Company A; Company A & Company B employ two (2) of the same employees (both employees provide contract support to Company A, while both employees provide security administration support to Company B); While Company A has been approved to be a Mentor, a Mentor-Protege arrangement between Company A & Company B has yet to be finalized by the Government; Company B does receive approximately 70% of its income from Company A.