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Norma-Jean [14]
3 years ago
15

Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer i

n Upper Saddle River, New Jersey. Becky has just started a new job as the controller for Mueller Imports, a much larger dealer for the same car manufacturer. Demand for this particular make of car is exploding, and the manufacturer cannot produce enough to satisfy demand. The manufacturer’s regional sales managers are each given a certain number of cars. Each sales manager then decides how to divide the cars among the independently owned dealerships in the region. Because of the high demand for these cars, dealerships all want to receive as many cars as they can from the regional sales manager.
Becky’s former employer, Shamalay Automotive, receives only about 25 cars each month. Consequently, Shamalay is not very profitable.
Becky is surprised to learn that her new employer, Mueller Imports, receives more than 200 cars each month. Becky soon gets another surprise. Every couple of months, a local jeweler bills the dealer $5,000 for "miscellaneous services." Franz Mueller, the owner of the dealership, personally approves payment of these invoices, noting that each invoice is a "selling expense." From casual conversations with a salesperson, Becky learns that Mueller frequently gives Rolex watches to the manufacturer’s regional sales manager and other sales executives. Before talking to anyone about this, Becky decides to work through her ethical dilemma. Put yourself in Becky’s place.
Requirements
1. What is the ethical issue?
2. What are your options?
3. What are the possible consequences?
4. What should you do?
Business
1 answer:
andre [41]3 years ago
3 0

Answer:

1. The ethical issue here is that Becky Knauer's new boss usually bribes the sales manager of a car dealership to get more quota of cars. He is doing this because the car is in high demand. The higher his quota, the higher the number of cars. The higher the number of cars, the more of them he can sell. The more he can sell, the higher the profits.

Here is the dilemma.  

First, the action of Becky's boss is wrong, but it is also helping to keep the business afloat thus translating to securing her job and probably sustaining the pay she is receiving. We know this because Becky's former employer who receives just 25 cars a month is not very profitable.  

Becky as the Controller, however, is in charge of Compliance. The actions of her boss are unethical. She has to flag such issues and report to him.

Franz is the owner of the dealership and is on the top of the 'food chain'. There is no one else within the organisational structure to report the matter to. He is supposed to lead by example. He, as the owner of the organisation, however, is leading with a bad example because other sales personnel know about these shady transactions.

2.  Becky's options are as follows:

A. If she is too scared to confront her boss, she can decide to resign. She would have lost her job. There is no guarantee she will get another and the unethical practices will continue.

B. She can raise the issue with her boss and point out the dangers of continuing in such practice. By doing this, she is ruling out the possibility that he somehow is unaware of the dangers of his actions. In raising the matter with her boss, she must do this in black and white.

The above decision can go either left or right.  

Right means that her boss comes to understand the import of his actions and makes amends. Left means, he gets jittery and fires her.

3. As stated above, Franz may fire Becky if she flags his actions.

If this happens, she can take the matter to the State of New Jersy Motor Commission and possibly sue Franz for wrongful dismissal.      

Cheers!

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A company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true? a. The company will recognize sale
kirza4 [7]

Answer:

The correct answer is C

Explanation:

Finished goods are those goods which have been finished or completed through the process of the manufacturing or purchased or bought in the completed form, but not sold yet to the customers.

The finished goods cost or expense is considered to be a asset which is short term in nature, which is expected to be sold in less than a year or period.

So, when the company sold the goods that worth $54,000 to the manufacture for $150,000, this will lead to decrease in the finished goods of the company which worth $54,000.

7 0
3 years ago
The outstanding capital stock of Flint Corporation consists of 1,900 shares of $100 par value, 5% preferred, and 5,200 shares of
bezimeni [28]

Answer:

(a) Preferred dividend = $9,500; and Common dividend = $73,500.

(b) Preferred dividend = $28,500; and Common dividend = $54,500.

(c) Total preferred dividend = $46,022; andTotal common dividend = $36,978

Explanation:

(a) The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.)

This implies preferred shareholders are entitled only to this year's dividend. Therefore, we have:

Preferred dividend = Number of preferred shares * Preferred share par value * Dividend percentage = 1,900 * $100 * 5% = $9,500

Common dividend = Retained earnings - Preferred dividend = $83,000 - $9,500 = $73,500

(b) The preferred stock is cumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.)

This implies preferred shareholders are entitled to the previous 2 years and this year's dividends making 3 years. Therefore, we have:

Preferred dividend = Number of preferred shares * Preferred share par value * Preferred dividend percentage = 1,900 * $100 * 5% * 3 = $28,500

Common dividend = Retained earnings - Preferred dividend = $83,000 - $28,500 = $54,500

(c) The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.)

First-Preferred dividend for 2 years = Number of preferred shares * Preferred share par value * Dividend percentage = 1,900 * $100 * 5% * 2 = $19,000

Second-Preferred dividend for this year = Number of preferred shares * Preferred share par value * Dividend percentage = 1,900 * $100 * 5% = $9,500

Third-Common dividend = Number of common shares * Common share per value * Preferred dividend percentage = 5,200 * $50 * 5% = $13,000

Remaining payout = Retained earnings - First-Preferred dividend for 2 years - Second-Preferred dividend for this year - Third-Common dividend = $83,000 - $19,000 - $9,500 - $13,000 = $41,500

Fourth participating payout as preferred dividend = Remaining payout * (Value of preferred shares / (Value of preferred share + Value of preferred share common shares)) = $41,500 * ((1,900 * $100) / ((1,900 * $100) + (5,200 * $50))) = $17,522

Fifth participating payout as common dividend = Remaining payout * (Value of common shares / (Value of preferred share + Value of preferred share common shares)) = $41,500 * ((5,200 * $50) / ((1,900 * $100) + (5,200 * $50))) = $23,978

Total preferred dividend = First-Preferred dividend for 2 years + Second-Preferred dividend for this year + Fourth participating payout as preferred dividend = $19,000 + $9,500 + $17,522 = $46,022

Total common dividend = Third-Common dividend + Fifth participating payout as common dividend = $13,000 + $23,978 = $36,978

8 0
3 years ago
In the context of segmentation of customers in database marketing,__________is a variable thatincludes gender, age, income, and
Dahasolnce [82]

Answer:

D) demographic information

Explanation:

Geographical information is a variable that includes where customers live.

Psychographic information is a variable that includes the consumers' beliefs, values and motivations.

I hope my answer helps you

3 0
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In early July, Damon Rutton purchased a $70 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was ex
Bingel [31]

Answer:

Sunk cost will be = $70

Explanation:

Sunk Cost refers to the cost for which the amount has been already spent, and cannot be recovered. These are generally incurred and then not regarded for decision making as irrespective of decision being viable or not this cost cannot be avoided.

In the given instance, Damon Rutton Purchased the ticket of $70

This is the only cost which has already been incurred, else other costs of parking and food will only be incurred if he visits the game of Sarasota Shippers.

When he spend some time with his wife sunk cost will be = $70

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Marc is 32 and married to Estella, who is 30. Estella is a stay-at-home mom to their two children, ages 1 and 4. They currently
astraxan [27]

Answer:

B. $1,015,500 on Marc ; $756,500 for Estella

Explanation:

Marc has current salary of $110,000 with which he runs the household expenses. If Marc dies then there should be more insurance coverage because he is the only person who earns in the house. Estella is a house wife and insurance coverage for her is lower than Marc because he will still be able to continue his earning.

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2 years ago
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