PRACTICE PREP:

A member of Jefferson City Council offers to help the Council earn cash for its project in Bond issue for a stadium to be used by a High School. The Council is considering issuing Revenue Bonds of $2,000,000 at 5% annual interest payable to the bond holders. A Council member offers to get the Council take a Long-term Loan from a bank he has interest in for $2,000,000 at 3%. He informs the Council that approval should be given for 5% because the difference of 2% on $2,000,000 will be shared by the Council members. The Council after some debate approved the interest rate of 5% and authorized the Councilman to finalize the deal

Required:

1.What are the ethical principles involved in this case?List but do not discuss

2.Who are the stakeholders who would be affected when things go wrong?List but do not discuss.