All categories

3 years ago

identify a case/instance in which a business person has acted in a way that is legally wrong, but ethically right.

Business

1 answer:

Sliva [168]3 years ago

4 0

Answer:

john, who was a broker at AP investment, used to avoid under performing and unsuitable products for clients acting in their interests. He was being pushed to sell AP investment's products than act in client’s interest. He reported the issue to his supervisors and colleagues, that was illegal as per firm’s legal requirements but at the same time it was ethical to act in the best interest of his clients.

Explanation:

An ethical obligation is a requirement to act in accordance with, or to refrain from violating, a recognized standard of right and wrong, whether set out in a professional, or a personal, code of ethics. Some ethical obligations for professional persons, including lawyers and doctors, may also be codified into law.

Legal obligations derive from the law, a system of rules which is applicable to the whole of a particular society, and is enforced through its institutions. The law seeks to facilitate relations between members of society by clarifying their rights and responsibilities, balancing their interests, and regulating the behavior of individuals and groups in accordance with that balance

You might be interested in

Mullineaux Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt

Fittoniya [83]

Answer:

a. Mullineaux's WACC = 0.60*12 + 0.05*5 + 0.35*7*(1 - 0.35)

WACC = 7.2 + 0.25 + 0.35*7*0.65

WACC = 7.2 + 0.25 + 1.5925

WACC = 9.0425%

WACC = 9.04%

b. After tax cost of debt = 7*(1 - 0.35)

After tax cost of debt = 7*0.65

After tax cost of debt = 4.55%

So since after tax cost of debt of 4.55% is less than the preferred cost of 5%, company should use debt in its capital structure.

8 0

3 years ago

Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Fact

Korolek [52]

Answer and Explanation:

The computation is shown below:

a. Factory overhead rate for Factory 1 is

= Estimated factory overhead cost ÷ Estimated machine hours for the year

= $1,516,700 ÷ 52,300

= $29

b. Factory overhead rate for Factory 2 is

= Estimated factory overhead cost ÷ Estimated direct labor hours for the year

= $1,074,600 ÷ 29,850

= $36

c. The journal entry is shown below:-

1. Work in process Dr, $126,150 (4,350 × $29)

To Factory overhead $126,150

(To record the factory overhead)

2. Work in process Dr, $97,200 (2700 × $36)

To Factory overhead $97,200

(To record the factory overhead)

d. The balance of the factory overhead amounts for each factory as follows:

For Factory 1

= $124,880 - $126,150

= $1,270 Credit Overapplied

For Factory 2

= $98,910 - $97,200

= $1,710 Debit Underapplied

7 0

3 years ago

Benton Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management e

maksim [4K]

Hey will you please help me with my essay and I’ll get back to yours please ASAP

8 0

3 years ago

Average Accounting Return. Concerning AAR:a. Describe how the average accounting return is usually calculated and describe the i

evablogger [386]

Answer:

a. Describe how the average accounting return is usually calculated and describe the information this measure provides about a sequence of cash flows. What is the AAR criterion decision rule?

Average accounting return = average net income / average investment

The problem with AAR is that net cash flows are not equal to net income since depreciation expense and changes in net working capital are not accounted for by AAR.

The criterion decision rule is that projects with an AAR above a certain measure.

b. What are the problems associated with using the AAR as a means of evaluating a project’s cash flows? What underlying feature of AAR is most troubling to you from a financial perspective? Does the AAR have any redeeming qualities?

it doesn't consider net cash flows, nor time value of money. Personally, accounting is an extremely important tool but it only reflects a partial perspective of a business. E.g. a business might have a huge net income but if it doesn't have enough cash to function, it will go bankrupt. In finance, cash is king.

Personally, my biggest problem with AAR is that it doesn't consider net cash flows. I've been on situations where the company I worked for was apparently doing great, but our accounts receivables were huge and we couldn't collect money fast enough. My job was basically go to different banks and convince them of loaning us cash. The worst part was that even without being able to collect cash, we still had to pay taxes and that was another huge problem.

I believe that AAR is still used because of its simplicity. Also, taxes are paid based on accounting profits and many firms base they compensation plans on them.

8 0

3 years ago

Joni wants to know how much a pedicure cost back in 1954, when her grandmother was her age. The Consumer Price Index (CPI) in 19

ohaa [14]

Answer:

The price of pedicure in 1954 = $4.89

Explanation:

The price of pedicure in 1954 = (CPI in 1954 ÷ CPI this year) × Price today = (26.7/245.9) * $45 = $4.89

Therefore, a pedicure cost $4.89 back in 1954.

4 0

3 years ago