Joe is a mechanic by trade who operates high-performance racing vehicles. He is passionate about his craft
Question:
Joe is a mechanic by trade who operates high-performance racing vehicles. He is passionate about his craft and has been in the industry for over 30 years. He owns his own home on acreage with his wife Josephine and two children - Andy and Izzy. Joe was looking to start a business with his friends - Carl and Juan to make some extra money on the side and maintain some cashflow as he eases into retirement from his mechanical work. Together, Joe, Carl and Juan decided to go into business as server and data storage system wholesalers, where they buy server and data storage system components, assemble, and sell complete systems to customers. Joe took the initiative to establish Joe Bloggs Pty Ltd ("Company") and has appointed himself, Carl and Juan as directors of the Company. Refer to Appendix 1, which shows the trial balance of the Company for the period 1 July 2021 to 30 June 2022.
- Joe has been approached by an external investor who is seeking new investment opportunities. What might the current directors of the Company consider if an external party is seeking to invest in the Company?
- The Company is looking to sell the motor vehicle in the 2023 financial year. What are some factors that the directors may want to consider?
- Juan has significant personal liabilities and as a result is filing for bankruptcy. How would the other directors of the Company, Joe and Carl, be impacted by Juan's bankruptcy?
- What might have caused the loan to Hakuna Matata Pty Ltd to increase during the 2022 financial year?
- Joe and Josephine want to have a third child. If Joe and Josephine do have a third child, how would this impact the trading activity and profitability of the Company?
- What comments do you have regarding the company's stock levels?
Business Ethics Ethical Decision Making and Cases
ISBN: 978-1305500846
11th Edition
Authors: O. C. Ferrell