Belinda Bauer recently resigned from her position as controller for Shauman Automotive, a small, struggling foreign...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Belinda Bauer recently resigned from her position as controller for Shauman Automotive, a small, struggling foreign car dealer in Saginaw, MI. Belinda has just started a new job as controller for Mullins Imports, a much larger dealer for the same care 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 high demand for these cars, dealerships all want to receive as many cars as they can from the regional sales manager. Belinda's former employer, Shauman Automotive, receives only 25 cars each month. Consequently, Shauman is not very profitable. Belinda is surprised to learn that her new employer, Mullins Imports, receives more than 200 cars each month. Belinda soon gets another surprise. Every couple of months, a local jeweler bills the dealer $5,000 for "miscellaneous services". Frank Mullins, 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, Belinda learns that Mullins frequently gives Rolex watches to the manufacturer's regional sales manager and other sales executives. Before talking to anyone about this, Belinda decides to work through her ethical dilemma. Put yourself in Belinda's place. Requirement: Respond to the following questions in a Word document submitted on Canvas. Responses will generally be between 1-2 pages total. 1. What is the fundamental ethical issue? Include reference to the laws or ethical standards relevant to the situation. 2. Who are the affected parties? 3. What are your possible courses of action and what are the possible consequences of those actions? Belinda Bauer recently resigned from her position as controller for Shauman Automotive, a small, struggling foreign car dealer in Saginaw, MI. Belinda has just started a new job as controller for Mullins Imports, a much larger dealer for the same care 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 high demand for these cars, dealerships all want to receive as many cars as they can from the regional sales manager. Belinda's former employer, Shauman Automotive, receives only 25 cars each month. Consequently, Shauman is not very profitable. Belinda is surprised to learn that her new employer, Mullins Imports, receives more than 200 cars each month. Belinda soon gets another surprise. Every couple of months, a local jeweler bills the dealer $5,000 for "miscellaneous services". Frank Mullins, 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, Belinda learns that Mullins frequently gives Rolex watches to the manufacturer's regional sales manager and other sales executives. Before talking to anyone about this, Belinda decides to work through her ethical dilemma. Put yourself in Belinda's place. Requirement: Respond to the following questions in a Word document submitted on Canvas. Responses will generally be between 1-2 pages total. 1. What is the fundamental ethical issue? Include reference to the laws or ethical standards relevant to the situation. 2. Who are the affected parties? 3. What are your possible courses of action and what are the possible consequences of those actions?
Expert Answer:
Answer rating: 100% (QA)
Person B was working as a controller of S automotive Due to low profitability and its struggle to su... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
Posted Date:
Students also viewed these accounting questions
-
Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer in Upper Saddle River, New Jersey. Becky has just started a new job as...
-
Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer in Upper Saddle River, New Jersey. Becky has just started a new job as...
-
A fresh graduate who just started his new job is choosing between two commuting cars of comparable sizes.The first is traditional gasoline car and the second is all-electric car. The anticipated...
-
Abhishek Ltd. is manufacturing cotton clothes. It has been consistently earning good profits for many years. This year too, it has been able to generate enough profits. There is availability of...
-
A two-sample t-test has a lot in common with simple regression. This output summarizes the results of fitting a simple regression with only a dummy variable as the explanatory variable. The data are...
-
A year ago, Rebecca purchased 100 shares of Havad stock for $25 per share. Yesterday, she placed a limit order to sell her stock at a price of $30 per share before the market opened. The stocks price...
-
The price of a share is \(\$ 25\), and after two months it will be \(\$ 23\) or \(\$ 27\). The risk-free interest rate is \(10 \%\) per year, continuously compounded. If \(S_{T}\) is the price of the...
-
Peninsula Industries and Seaport Company, a 90 percent owned subsidiary, engage in extensive intercompany transactions involving raw materials, component parts, and completed products. Peninsula...
-
Ignoring time value of money, what is your break-even point (such exchange rate that will result in zero profit) if you sold a put option on 1 with a strike price of 1.8$/ for $0.1 and, at the same...
-
Write a symbolic microprogram routine for the ISZ (increment and skip if zero) instruction defined in Chap. 5 (Table 5-4). Use the microinstruction format of Sec. 7-3. Note that DR = 0 status...
-
What are great examples of the strategies and approaches organizations use to conduct a cash-flow analysis to determine cash position and liquidity. Explain why cash flow is important with citations...
-
Solve the linear system \(\mathbf{A x}=\mathbf{b}\) by using a. The inverse of the coefficient matrix. b. 1 The "\" operator in MATLAB. \(\mathbf{A}=\left[\begin{array}{ccc}2 & 1 & -2 \\ 3 & 0 & 2 \\...
-
Consider the conditions of work in perfume factories. In New York perfume factories, workers dislike the smell of perfume, while in California plants, workers appreciate the smell of perfume,...
-
Which groups in the population were overrepresented among those who died from Covid19? Which groups were underrepresented? In what way did the demographics of Covid19 mortality differ from the...
-
Use a bar graph to plot the cumulative relative frequency. Use the goaltenders salaries for the 1991 NHL season given in the following table to answer question. Name Patrick Roy Ed Belfour Ron...
-
Swift Feet, Inc. can produce 1,000 pairs of sneakers per hour at maximum efficiency. There are three 8-hour shifts each day. Due to unavoidable operating interruptions, production averages 800 units...
-
On average, our survey respondents indicate that there is a 78% likelihood they will purchase our product again, with a confidence interval 74% ~ 82%, what is the margin of error?
-
A woman at a point A on the shore of a circular lake with radius 2 mi wants to arrive at the point C diametrically opposite on the other side of the lake in the shortest possible A time. She can walk...
-
Janice wants to take the next five years off work to travel around the world. She estimates her annual cash needs at $28,000 (if she needs more, she will work odd jobs). Janice believes she can...
-
Charlottes Golf School, Inc., completed the following transactions during March, 2012: Mar 1 Prepaid insurance for March through May, $600. 4 Performed services (gave golf lessons) on account,...
-
Tri-State Optical Company reported the following amounts on its balance sheet at December 31, 2012 and 2011: Requirement 1. Prepare a vertical analysis of Tri-State assets for 2012 and2011. 2012 2011...
-
How does the firms WACC (with taxes) change with leverage?
-
Assume that Microsoft has no debt, a total market value of $2 trillion, and a marginal tax rate of 21%. If it permanently changes its leverage from no debt by taking on new debt in the amount of 13%...
-
In your view does transport add value in the supply chain?
Study smarter with the SolutionInn App